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Excise Tax (15%)

The excise tax is a business tax charged to the retailer and paid to the distributor. It applies to all legal cannabis sales, both medical and adult-use.

The excise tax goes toward state spending on such things as environmental cleanup, law enforcement, and drug prevention programs, among others.

City & State Tax (9.5%) District Tax (1%)

This tax is charged at the cannabis dispensary during sale on top of the sales price and the cannabis business tax.

This revenue goes to the state’s general fund as well as toward local transportation, social services, and public safety funds.

Cannabis Business Tax (15%)

Local governments also tax cannabis sales at their discretion. This local cannabis business tax rate is charged during sale on top of the product’s selling price. The funds typically go toward local services.