Supplemental Thoughts About Revenue from Marijuana in Vermont
30 Pages Posted: 17 Jan 2015 Last revised: 20 Jan 2015
Date Written: January 16, 2015
This document is a supplement to a study by the RAND Corporation for Vermont. It represents the views of the author alone, and not of RAND or of the study's other co-authors.
It looks at several issues associated with marijuana revenue. First, who might get a break on marijuana taxes? Possibilities include medical card holders, home growers, buyers of favored products, growers that use natural sunlight, and small or large businesses. Second, how much tax can the marijuana market eventually bear? Third, who pays marijuana taxes – (what is the collection point?) – for three possible tax bases, weight, price, and THC potency? Fourth, what other issues might loom?
Keywords: tax, excise, marijuana, alcohol, tobacco
JEL Classification: A13, D40, E61
Suggested Citation: Suggested Citation