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Depending on the state you’re in, medical and recreational marijuana taxes will vary, potentially significantly impacting the bottom line of your business. Imagine establishing a solid cannabis payroll system with help from a reputable provider only to find yourself tangled up in taxes you don’t understand. That’s why it’s important to learn more about the different taxes on cannabis across the nation and how they differ for medicinal and recreational purposes.
On a federal level, cannabis is still illegal, meaning there’s no blanket ruling regarding marijuana taxes. That being said, local and state jurisdictions have the freedom of taxing the green at any level they find appropriate, which results in a wide range of discrepancies regarding recreational and medical marijuana taxes across the country.
However, that doesn’t mean that there are absolutely no overarching principles in the world of cannabis taxes in the United States. In fact, there are three main types of tax imposed on cannabis:
When it comes to taxes on medicinal cannabis purchases, they tend to be a lot more lenient when compared to their recreational alternative. This means that, depending on the exact state of the U. S. medicinal marijuana is almost always a lot cheaper than its recreational counterpart while retaining all the required effectiveness and potency. What’s more, there are several states that don’t impose any additional taxes on medical cannabis:
Contrary to the situation with medical marijuana, most states increase taxes for sales of recreational marijuana. Take Oregon as an example. This state imposes no additional taxes on medical cannabis, while it does hit recreational cannabis with additional 17% excise tax and 3% local municipal tax. In general, taxes on recreational marijuana, as evident from a single example, are higher when compared to medicinal cannabis.
If you’re in need of a professional company to outsource all the accounting requirements of your dispensary, there’s no one better than Green Leaf Business Solutions. You can count on us to help you with every single aspect of running a successful marijuana dispensing business, from helping you understand what taxes you can deduct from your employees to assisting you in avoiding the numerous potential bookkeeping mistakes.
What’s more, we’re also here to help you establish a high-quality payroll system that will help you reap all the benefits of using professional-grade solutions. Finally, we’re also here if you need comprehensive HR and technical solutions suitable for your business as well as if you’re looking for assistance with benefits planning, recruitment, and a lot more. Reach out to us today and start implementing modern solutions for stable business growth.