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Alaska’s cannabis tax rewrite moves from House committee

A bill to cut the tax on cannabis growers and instead enact a sales tax for consumers left the House Labor & Commerce Committee on Friday for the House Finance Committee after proponents made a compelling case that growers are being harmed by the current tax regime.

Cannabis cultivation and marketing was legalized by Alaska voters in 2014, and the industry started growing, regulated by the Alaska Marijuana Control Board.

HB 119 reduces the tax on cultivated cannabis from $50 an ounce to $12.50 an ounce. At the same time, a 6% sales tax would be levied on consumers who purchase cannabis at retail stores in Alaska. Proponents believe that a lower tax and restructuring will take some of the wind out of the sales that are currently being done on the black market.

Lacy Wilcox, owner of a cannabis business in Juneau, said that the tax is eating into profits.

Read more at www.mustreadalaska.com

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