Massachusetts Compromise: Cannabis Tax Can Reach Up To 20%
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A compromise between the Massachusetts House and Senate has resulted in a deal that will impose a sales tax of up to twenty percent in regards to the state’s voter-approved recreational cannabis law. This is essentially a halfway point of sorts, between the House’s proposal of a 28% tax and the Senate’s 12% tax cap on cannabis products.
Negotiations had been underway for weeks to try and reach such a compromise between the two chambers.
Under the language of the agreement, consumers will pay a 10.75% excise tax, in addition to the state’s 6.25% sales tax. Cities and towns will also have the ability to impose an additional 3% local tax, if they so wish.
Another compromised reach was in relation to how much control municipalities can have over local cannabis dispensaries. In municipalities where the majority of voters did so in favor of cannabis legalization, a referendum will be required for the city or town to impose restrictions or outright bans against recreational cannabis institutions. However, in municipalities where the majority of voters cast their ballots against legalized cannabis, it will just take the simple vote of a council committee to issue such bans and restrictions.
“We have protected the right of adults to grow, possess, and use marijuana. To give them access to a safe, legal supply, the bill removes barriers to the development of a legal market,” said Sen. Patricia Jehlen, who was the lead negotiator for the Senate in the conference committee. House Majority Leader Ron Mariano, who was also a part of these negotiations, also considers the compromises made to be in the best interest of all involved-including consumers.
The full House and Senate are expected to cast the deciding vote on the compromise bill later this week. No additional amendments will be allowed to be introduced to this bill.
SOURCE
WeedDaily.net
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Soft Secrets
