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Cannabis Taxes

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2024 Drug Policy Ballot Initiative, Drug Legalization Results

Momentum Slows for State Drug Legalization Policies via 2024 State Ballot Initiatives

With the significant potential for state revenues, and the prior political success of arguments that legalization can shift consumers to safer legal markets, it seems likely that states will continue to see legislation and ballot initiatives to legalize marijuana at the state level—even states that failed to do so this election.

5 min read
Rescheduling marijuana and rescheduling cannabis Department of Justice DOJ tax and legalization of cannabis and marijuana Section 280E

What Are the Tax Consequences of Rescheduling Marijuana?

The Department of Justice (DOJ) recently announced that it would move to reschedule marijuana. This move doesn’t do as much for legal cannabis sales as proposed federal legislation like the States 2.0 Act, but rescheduling cannabis has major ramifications for cannabis businesses.

4 min read
States Act 2.0 Federal Cannabis Reform and States 2.0 Act Federal Cannabis Policy Efforts

STATES 2.0 Act Sets the Stage for Federal Cannabis Policy

According to recent reports, 72 percent of the current marijuana market in the US is illicit. Evidently, the federal criminalization of marijuana has failed to prevent its sale or consumption.

6 min read
2023 state tax changes taking effect july 1

State Tax Changes Taking Effect July 1, 2023

At least 32 notable tax policy changes recently took effect across 18 states, including alterations to income taxes, payroll taxes, sales and use taxes, property taxes, and excise taxes. See if your state tax code changed.

16 min read
Global excise tax trends and global excise tax applications data and research on excise taxes

Exploring Excise Tax Trends

The tax base around the world is shrinking for traditional excise taxes, including taxes on tobacco, alcohol, and motor fuel. But newer excise taxes on things like carbon, cannabis, and ride-sharing are on the rise. What makes a good design for these taxes and where may excise taxes go in the future as the traditional “sin tax” base continues to shrink?

Green Rush: Principles for Taxing Cannabis

Taxing cannabis is brand-new territory. While many states see recreational cannabis as a potential gold mine for tax revenue, the reality of designing a new tax is more complicated.

State recreational marijuana taxes as of April 2023 state cannabis tax rates

Recreational Marijuana Taxes by State, 2023

Recreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 21 states have implemented legislation to legalize and tax recreational marijuana sales.

6 min read
Global excise tax trends and global excise tax applications data and research on excise taxes

Global Excise Tax Application and Trends

When designed well, excise taxes discourage the consumption of products that create external harm and generate revenue for funding services that ameliorate social costs. The effectiveness of excise tax policy depends on the appropriate selection of the tax base and tax rate, as well as the efficient use of revenues.

83 min read
State recreational marijuana taxes 2022 legalization and taxation by state recreational marijuana tax status

Recreational Marijuana Taxes by State, 2022

Recreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 19 states have implemented legislation to legalize and tax recreational marijuana sales.

6 min read
marijuana policy, cannabis policy, federal taxation of recreational marijuana, MORE Act tax Marijuana Opportunity Reinvestment and Expungement Act

Cannabis Taxes Back on the Ballot in 2022

While changes to federal cannabis law are slow, changes at the state level are accelerating. Recreational cannabis is on the ballot in five states this November—Arkansas, Maryland, Missouri, North Dakota, and South Dakota—giving voters the ability to join 19 states that have already legalized recreational marijuana.

5 min read
TaxEDU glossary

Case Study: Taxing a New Industry

More states are contemplating the tradeoffs associated with legalizing recreational marijuana and taxing it to obtain a new stream of revenue. In fact, a key point when legalizing recreational marijuana is tax design. Most states that currently allow and tax sales have opted for a price-based (ad valorem) excise tax and levy the general sales tax on recreational marijuana sales.