United States

Blog Details

Vermont Proposes Bill to Legalize Recreational Use of Marijuana

The State of Vermont proposed a bill to legalize the recreational use of marijuana and is working to become the next state to fully legalize recreational marijuana, but politicians are taking a different approach.

Senate Bill 95 was introduced Tuesday and if passed, Vermont would be the first state to legalize the possession, use and sale of recreational marijuana in the state for those 21 and older by state legislature. So far Washington, Colorado, Alaska and Oregon have legalized recreational marijuana through a public vote.

Another key difference is the taxing structure Vermont is looking to utilize. Vermont’s bill would proposes an excise tax of $40 per ounce of marijuana flower, $15 per ounce of any other marijuana product and a $25 tax on each immature cannabis plant sold by a cultivator.

By comparison, Colorado collects tax revenue from marijuana sales through a 15 percent excise based tax on the average wholesale market rate; a 10 percent state tax on retail marijuana sales; a state sales tax of 2.9 percent; varied local sales taxes; and local marijuana taxes such as a 3.5 percent tax in Denver.

Washington State collects tax revenue from marijuana sales through a 25 percent tax on producer sales to processors; a 25 percent tax on processor sales to retailers; a 25 percent tax on retailer sales to customers; a state Business & Occupation (B&O) gross receipts tax; a state sales tax of 6.5 percent; and varied local sales taxes. The total effective tax rate to be about 44 percent, although this could change this legislative season.

Article Link: http://www.huffingtonpost.com/2015/02/17/vermont-marijuana-legalization_n_6662426.html