HB18-1062
Sales Tax On Retail Marijuana
Concerning the sales tax imposed on sales of retail marijuana, and, in connection therewith, reducing the retail marijuana sales tax rate by two and nine-tenths percent and repealing the general state sales tax exemption for sales of retail marijuana.
Session:
2018 Regular Session
Subjects:
Bill Summary
Fiscal Policy & Taxes
Gaming, Lottery, & Racing
On March 1, 2018, the bill repeals the general state sales tax exemption for sales of retail marijuana and reduces the retail marijuana sales tax by 2.9% from 15% to 12.1%. With the repeal of the state exemption, sales of retail marijuana will automatically be subject to the sales tax levied by a limited purpose governmental entity whose sales tax authority is the same as the state.
Currently, statutory municipalities and counties are authorized to create an exemption for sales of retail marijuana that are exempt from the state general sales tax. Along with the repeal of the state exemption, this contingent authority is repealed.
(Note: This summary applies to this bill as introduced.)