Panel to propose 26 percent tax rate on marijuana sales
MONTPELIER, Vt. (AP) — A Vermont panel plans to propose a 26 percent tax rate on marijuana sales.
The Governors Subcommittee on Taxation and Regulation will present its 90-page report to Gov. Phil Scott’s Marijuana Advisory Commission next month. Under the plan, Vermont would adopt a 26 to 27 percent tax rate on cannabis sales. The rate includes a 20 percent cannabis retail excise tax, 6 percent state sales tax and a 1 percent local option tax.
Officials say prices for legal cannabis should be competitive with prices in the illicit market. According to the report, other states that legalized recreational cannabis saw increases in state revenue, despite falling prices.
Leaders plan to hold public feedback meetings before it submits its recommendations to Scott.
Lt. Gov. David Zuckerman, a Progressive/Democrat, supports a tax-and-regulate market.
“If we have an aboveground market, where you have choices, just as we do with beer, most people are going to go where those choices exist, where they know it’s a clean product, where they know it doesn’t have herbicides and pesticides on it,” he told WCAX-TV.
The report recommends that retail marijuana sales start 18-24 months after recreational pot sales become legal.