Alaska eyes new tax Grade for cannabis cultivators in face of black-market demand

Alaska eyes Fresh tax tier for cannabis cultivators in face of black-market demand

Alaska’s Department of Revenue is devoting a third tax tier for cannabis cultivators in an obvious bid to make the state’s legal marijuana prices more competitive with the black market.

That’s based on Ken Alper, manager of the country ’s tax division, who was talking at Alaska’s Marijuana Control Board on Wednesday.

Here are the principles surrounding the situation:

  • The state’s current excise tax per wholesale ounce of cannabis bud or blossom is $50, according to the Marijuana Business Factbook 2018.
  • That speed – equal to $800 per pound – is decimating profit margins and boosting black-market action, Alaska’s authorized cultivators argue.
  • Another tax tier – $15 per wholesale ounce – is levied on what’s commonly referred to as trim.
  • Cultivators pay the taxes when cannabis is sold to retailers.
  • The current excise tax makes it difficult for cultivators to compete with the black market, said Brandon Emmett, vice chair of Alaska’s Marijuana Control Board and chief operating officer of Great Titrations, an Alaskan concentrates producer.

Alper didn’t provide details on what a third party tax rate would look like, which would require legislative approval. However, he emphasized the need for caution regarding syntax used to define parts of the plant which would fall to a new tier.

“Anything is probably better than what we have now,” Emmett said during Wednesday’s meeting.

“Whether it’s a percentage of a retail sales tax, a THC potency tax or an amendment to the excise tax, we want something which meets Alaskans’ need, and we need to ensure it is no longer profitable for black-market operators to send illegal product into our nation. ”

Alper also said if a consensus develops on a new tax tier, the state’s tax division would work with the business to move it to the legislature.

Published at Thu, 14 Jun 2018 16:49:32 +0000

Posted in: News

Comments are closed.