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.
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