Alaska Updates Marijuana Tax Rules

The Alaska Department of Revenue has made changes to its Administrative Code regarding marijuana taxes. The regulations were changed to implement new tax rates for various parts of the marijuana plant. A new subjection was also added regarding the tax rate applicable to different parts of marijuana sold or transferred in a single package. Some definitions have also been added regarding various parts of the marijuana plant. The regulation changes were reviewed and approved by the Department of Law, signed and filed by the Lieutenant Governor on October 8, 2018, and will go into effect on January 1, 2019.

Different Parts Of The Plant Taxed

According to the changes, all non-exempt marijuana sold or transferred from a marijuana cultivation facility will be taxed as follows:

– mature bud will be taxed at $50 an ounce;

– immature bud will be taxed at $25 an ounce;

– abnormal bud will be taxed at $25 an ounce;

– the remainder of the plant will be taxed at $15 an ounce;

– clones will be taxed at $1 per plant; and

– marijuana offered for sale in a manner that contains a combination of plant parts will be taxed at the tax rate applicable to the plant part subject to the highest tax rate under this section.

The notice is available at https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=191713, which includes a link to the edited regulations.

Notice, Alaska Department of Revenue, October 9, 2018

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