Where Do Weed Taxes Go? Health, Safety, Education Or Social Equity? The Answer Varies Depending On Where You Are

Where Do Weed Taxes Go? Health, Safety, Education Or Social Equity? The Answer Varies Depending On Where You Are

Original publication: October 12, 2020.

Due to the ongoing U.S. federal prohibition of cannabis, states must implement their own regulations and various excise and sales taxes. Excise taxes in many Western U.S. states tend to hover 15% while others, like Washington, charge 37%.

Additional charges may come in the form of additional municipal taxes, per ounce cultivation rates, potency and other measures, depending on regulations.

Cannabis markets typically see varying success with the revenue they generate, as well as what the money goes towards.

How States Tend To Allocate Cannabis Tax Revenue

"Most states allocate their cannabis tax revenue towards various public health and safety, education and social equity programs," says Laura Bianchi, a partner at cannabis legal firm Bianchi & Brandt.

Funds also often go toward programs aimed at combating substance abuse and the effects of the drug war.

"Programs that provide transparency to the public, including a clear understanding of the use and application of such revenue is essential," Bianchi said. "Tax models that track the use and impact of those funds is also important both from a public policy, community support and efficiency perspective."

States must also balance the benefits of cannabis taxes without making the illicit market appealing to consumers, she says.

In Oregon, funds are allocated towards education, the city, police and government health boards, but not social justice reform.

"You are seeing more states write this in their legislative passing of legalization," said Kendra Freeman, co-founder and chief product officer of Portland, Oregon-based CBD brand Mendi. Illinois and Michigan have more robust social equity plans, she added.

Police Funding

Freeman is among those in the cannabis community who say funds should not go towards policing so long as the war on drugs and arrest disparities continue.

"Cannabis was made illegal to keep BIPOC in poverty and to keep them locked up," Freeman said. "We have a lot of work to do to untangle that."

Bianchi empathized while stating that the manner isn't cut and dry.

"Unfortunately, I do not think a simple yes or no is appropriate," she said. The legal partner noted the unique needs of each state.

"If a state has a population of people who have been disproportionately affected by marijuana criminalization, then it might be worthwhile to allocate a portion of revenue towards police education and training," said Bianchi.

While understanding the possible need for police funding, Bianchi opined that the process starts with targeted education, training and community involvement.

Uniform Tax Code Prospects

Often, the fragmented cannabis market leads to calls for standardization, usually via federal legalization.

Such calls for standardization typically back reform legislation, such as the MORE or SAFE Banking Acts. That said, a unified tax code for the market isn't uniformly well-received or seemingly feasible in the near future.

"Uniformity in the cannabis industry would be great. However, that's something we won't likely see until federal legalization and the allowance of interstate commerce," Bianchi says, adding that a unified code would be needed at that point to avoid double taxation.

Posted In: Bianchi & Brandtcannabis industryCannabis TaxesICYMImarijuana reformMendiCannabisGovernmentNewsRegulationsPoliticsTop StoriesEconomicsMarketsInterviewGeneral

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11 Best Black Friday Deals on Amazon

11 Best Black Friday Deals on Amazon

The best Black Friday deals from Amazon are still coming hard and fast because the holiday is not yet upon us and the mega-retailer prefers to keep consumers on the hook for as long as possible—spending as much money as possible. 

To that end, here are some of the best Black Friday deals from Amazon that you might want to consider today.

Calphalon 10-Piece Pots and Pans Set

Regular Price: $172

Sale Price: $138.88

Calphalon’s 10-Piece Pots and Pans Set is designed with stainless steel, stay-cool handles along with pour spouts. The nonstick surface is PFOA-free and built with hard-anodized aluminum that is both durable and conducts heat extremely well. The set includes 2 fry pans, a sauce pan with cover, saute pan with cover and large stock pot with cover.

Apple AirPods 2nd Generation

Regular Price: $144

Sale Price: $85.49

The 2nd Generation AirPods from Apple connect to all Apple devices and give you an enhanced listening experience. Plus, they come with a case that keeps them safe and allows you to charge them in a secure environment. With over 24 hours of battery life, access to Siri and easy setup, you can start listening to your favorite tunes or podcasts today.

Adidas Ultraboost 21 Running Shoes

Regular Price: $129.98

Sale Price: $89.98

The Adidas Women’s Ultraboost 21 running shoe is perfect for anyone who likes a short run, maybe a 5K, half marathon or more. Coming in several colors and styles, you can slip these shoes on, enjoy the cushioned outsole, sink into the supple insole and secure laces.

Ninja AF101 Air Fryer

Regular Price: $129.99

Sale Price: $97.83

The Ninja AF101 Air Fryer allows you to crisp, roast, reheat and even dehydrate food products faster and cheaper than ever before. It has a 4-quart capacity and offers a wide temperature range along with several time settings so that you can customize each dish to your needs. Plus, all the parts are dishwasher safe.

Beats Solo3 Wireless On-Ear Headphones

Regular Price: $199.95

Sale Price: $99

Beats by Dr. Dre are among the best headphones on the market, and the Solo3 Wireless On-Ear Headphones include the Apple W1 chip, Class 1 Bluetooth and 40 hours of battery time. These headphones even have a built-in microphone and offer an adjustable fit so that you can be comfortable whether you’re listening to an Android or iOS device.

Hoover Power Scrub Deluxe Carpet Cleaner

Regular Price: $198.98

Sale Price: $175.98

The Hoover Power Scrub Deluxe Carpet Cleaner allows you to keep your home spotless and clean up after your pets. The cleaner comes with the Hoover Paws and Claws Deep shampoo and a storage mat to keep the floor dry once it’s put away.

LG CordZero Auto Empty Cordless Stick Vacuum

Regular Price: $999.00

Sale Price: $851.71

The LG CordZero Auto Empty Cordless Stick Vacuum and Wet Mop All in One Tower is designed to work in homes with several pets or children and clean up all the messes that life brings. The battery lasts up to 2 hours, and there’s an extra removable battery that gives you even more cleaning time and power.

Breville Fresh and Furious Blender

Regular Price: $278.60

Sale Price: $199.95

Breville, a top name in blenders and juicers, offers the Fresh and Furious Blender, featuring 50-ounce capacity, Vac Q technology, pre-programmed cycles, LCD display and lid with pull ring. With the Fresh and Furious Blender, you can make everything from a smoothie to a soup and everything in between.

Hot Tools Professional 2000 Turbo Ionic Hair Dryer

Regular Price: $89.99

Sale Price: $55.63

The Hot Tools Professional 2000 Turbo Ionic Hair Dryer is designed for professional use, but it works perfectly in the home. With 1875 watts of power, 6 heat and speed settings and a lightweight design, you can easily style your hair and utilize the diffuser, cut back on the frizz and stretch the 8 ft cord for maximum functionality.

Columbia Heavenly Long Hooded Jacket

Regular Price: $160

Sale Price: $97.38

The Heavenly Long Hooded Jacket from Columbia is designed to be light for everyday use, but it’s heavy enough to protect you from the cold. The plush fleece lining, security pocket, water resistant fabric, 2-way zipper, and zippered hand pockets make the jacket both protective and functional.

ConAir InfinitiPro Hair Dryer

Regular Price: $49.99

Sale Price: $29.99

ConAir is one of the biggest names in hair and beauty, and the InfinitPro is an 1875 watt hair dryer designed for professionals with ceramic technology. The dryer comes with a diffuser and concentrator, and it allows you to blow out your hair just the way they would at the salon.

Deals the Experts Are Hoping For

Experts believe that Amazon’s Black Friday sale could linger for quite some time. It all started with the Prime Early Access sale on October 11 and 12. Previously, Amazon has offered the “Epic Deals” sale that ran through late October. 

This is to say that any sale could come up at any time. 

Even so, those monitoring Amazon are looking forward to a few potential deals, including:

  • Apple Watch
  • AirPods (any generation)
  • MacBook Pro
  • Large, underpriced TVs
  • Amazon Echo
  • More small home appliances (Dyson or Shark vacuums, Instant Pots, etc.) 

While these predictions are based on last year’s Amazon Black Friday Sale, it’s important to remember that most Black Friday sales are fairly consistent and push the products that are most likely to sell.

 

Featured image sourced from Shutterstock

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