WASHINGTON -- States that have legalized the sale of recreational marijuana have a variety of ways to tax the substance, according to a review from a tax-focused nonprofit group.
With eight states legalizing recreational marijuana, the different tax structures range from a percentage of sales to weight of product, said the Washington, D.C.-based Tax Foundation. The amounts also vary greatly.
Here’s how the rates shake out …
Percent of sales
Six states charge sales or excise taxes, ranging from a 3.75% sales tax in Massachusetts that will kick in when retailers start selling recreational marijuana in 2018 to a whopping 37% sales tax in Washington state. Here’s the rundown:
- Colorado: 15% excise tax, 10% sales tax (the latter will fall to 8% on July 1, 2017)
- Maine: 10% sales tax
- Massachusetts: 3.75% sales tax
- Nevada: 15% excise tax
- Oregon: 17% sales tax
- Washington: 37% sales tax