Massachusetts Raises Marijuana Tax

Massachusetts – Legislation has now increased excise and sales tax on recreational marijuana.  Excise tax for recreational marijuana will increase from 3.75% to 10.75% and sales tax will increase from 2% to 3%. The excise and sales tax will be in addition to the state sales tax rate of 6.25% for recreational marijuana. The bill also increased the percentage that municipalities are allowed to tax marijuana sales at from 2% to 3%.

Revenue generated by these taxes would be deposited in the Marijuana Regulation Fund. Marijuana possession was legalized on Dec. 15, 2016, but retail sales of the drug remain illegal until Jan. 1, 2018, a delay intended to give state and local authorities time to decide how to regulate the trade. However, the sale of medical marijuana for the state of Massachusetts still remain untaxed.

About Davis & Davis LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis & Davis LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis & Davis, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

For sales/use tax compliance questions or audit-related concerns, we are here to help!

Contact us at:

Or call today for a consultation:


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.