Lawmakers propose 20% tax on recreational marijuana
Recreational marijuana would be taxed at 20 percent, with 5 percent of that paid to communities that host growing or retail facilities, under a plan proposed Tuesday by a committee drawing up regulations for the new industry.
Lawmakers proposed a 10 percent wholesale tax, or excise tax, and a 10 percent sales tax on recreational marijuana – the same overall tax rate as Massachusetts – during an 8-hour session Tuesday. The marijuana legalization committee proposed having the state distribute 5 percent of all state taxes collected from cultivation or retail operations to host communities
The MMCP and the Department of Commerce have released the application, forms, and instructions for public institutions of higher education located in the State of Ohio to apply for a license to conduct laboratory testing of medical marijuana and medical marijuana products.
Click here to view the full set of application documents.
US VIRGIN ISLES
The prudish observer might think that the U.S. Virgin Islands is trying to sin its way to prosperity. Earlier this year the Legislature and the governor moved forward with the so-called sin taxes and now Sen. Positive Nelson, in his persistent effort to reform marijuana laws, has reintroduced the Virgin Islands Medical Cannabis Patient Care Act.
In a news release, Nelson said he is fulfilling his obligation to the people of the Virgin Islands who supported the November 2014 ballot initiative to allow for the legalization of medical cannabis in the Virgin Islands.
The Average Marijuana Stock Price Is Up Over 300% In The Past Year
Investing in marijuana seems to be the current trend as high returns have been noted across the board, however, Investors have, in the past year, been spoiled by incredibly high yields since the stock market’s bounce back after 2008. The three major U.S. indexes have tripled in value, with the NASDAQ Composite reaching almost four times what it was in 2009.
Given the high rise in stocks having nothing to with marijuana, cannabis stocks have done even more in just one year. Over the past 12 months, the average MMJ stock with a market cap above $200 million, was up by 332%. Out of the 12 stocks in this category, only one went down over a year long basis, with one other company skewing the results with a 2,363% 12-month gain. That company is Axim Biotechnologies (NASDAQOTH: AXIM).
Here’s a list of the stocks and their respective gains in the past 12 months.
Axim Biotechnologies: up 2,363%.
Aurora Cannabis (NASDAQOTH: ACBFF): up 465%.
Aphria: up 209%.
Cara Therapeutics: up 207%.
Canopy Growth Corp. (NASDAQOTH: TWMJF): up 191%.
Medical Marijuana, Inc. (NASDAQOTH: MJNA): up 175%.
Zynerba Pharmaceuticals: up 157%.
Corbus Pharmaceuticals: up 146%.
Arena Pharmaceuticals: up 43%.
Scotts Miracle-Gro: up 25%.
GW Pharmaceuticals: up 17%.
Insys Therapeutics: down 18%.
So why the giant upswing trend among marijuana stocks? The main speculation behind the giant growth is the changing perception amongst the public. As new research comes out every day, more and more people are jumping on board with the cannabis revolution. A poll from Gallup showed that in terms of favorability, marijuana popularity is over 60% in the general public. As the public becomes more comfortable with the notion of legalization, the industry continues to grow exponentially.
The main issue with investing in marijuana stands at whether or not these companies can remain profitable. It’s no question that the market will see MMJ stocks continue to rise, but as it becomes more normal, will growth suddenly slow down? Or is this just the beginning?