It includes the formation of the Office of Cannabis Management to oversee industry regulation, a mechanism for those with marijuana convictions to expunge their records and a framework for 15 different cannabis license types. Businesses can apply for these licenses, which include cannabis cultivation, manufacturing and retail.
The bill also introduces a Gross Receipts Tax of 10% as an excise tax on the sale of cannabis products. Furthermore, the state’s prevailing sales tax of 6.875% will also be applicable to cannabis sales. Consequently, consumers will effectively pay a cumulative tax of 16.875% at the point of purchase. This means that an outlay of $100 for cannabis products will, with taxes included, amount to a total payment of $116.88.
Read the full article published on MN CPA.
By Ari Hoffnung, CEO of Bridge West Consulting and published in MN CPA.