Senate Bill 465 Arkansas to Extend 4% Tax on Cannabis Sales
“…in this world nothing can be said to be certain, except death and taxes.”
– Benjamin Franklin
Cannabis and Taxes
Arkansas Marijuana Patients have paid a 4% special privilege tax on cannabis sales since dispensaries have been open.
This week Senate Bill 465 is being sent for the Governor’s approval, extending the 4% tax through 2023.
In addition to the state sales tax of 6.5%, that puts the total of state taxes to 10.5% on cannabis sales.
And a lot of that money is going towards a great cause.
Are Taxes too High on Cannabis in Arkansas?
That might seem a bit high for residents of the Natural State, but those numbers are pretty average when compared to how other states tax cannabis sales.
Oklahoma’s 7 percent excise tax combined with the 4.5 percent state sales tax comes to around 11.5%
Colorado collects a 2.9 percent state sales tax from both medical and recreational marijuana sales. Recreational marijuana is hit with an additional 15 percent excise tax for a total of almost 18%.
In Los Angeles, California, recreational marijuana taxes are composed of a 10 percent city tax, a 15 percent excise tax, and 9.5 percent sales tax.
A dismal total of 34.5%.
Where Do My Arkansas Cannabis Taxes Go?
While no one likes to pay higher taxes, Arkansas marijuana patients can rest assured their money is being well spent.
The University of Arkansas for Medical Sciences (UAMS) is one of the larger recipients of cannabis taxes, with which they plan to fund a National Cancer Institute-Designated Cancer Center, according to Arkansas Department of Finance Director of Communications Scott Hardin.
UAMS received $9.1 Million to the University of Arkansas for Medical Sciences National Cancer Designation Trust Fund in fiscal 2020, a combination of revenue coming from the 4% medical marijuana tax and the 50-cent tax on cigarette papers.
UAMS is estimated to need $10 million - $20 million per year to open and operate the facility, this money will contribute to those costs.
Arkansas Cannabis For Cancer
While Arkansas cannabis continues to thrive, the state will continue to reap the benefits of regulation and revenue. And though Arkansas marijuana patients may be spending a little extra cash, the money is going towards needed medical sciences.
The state has chosen to use a sizable portion of the taxes on cannabis sales towards cancer research and treatment, and that’s the right choice.
Cancer is one of the qualifying conditions for an Arkansas Marijuana Card, and funding is one of the most important steps in cancer research.
Every purchase Arkansas residents make in a dispensary goes towards the fight against cancer.
Arkansans can stand proud knowing that their state is making a difference by moving the needle a little bit closer to a world without cancer.
Support The Fight Against Cancer & Get Your Arkansas Marijuana Card Today!
With the number of registered patients growing, thousands of Arkansas residents are receiving their Arkansas marijuana cards every month.
The Arkansas Medical Marijuana program is available for anyone with a qualifying condition, and getting your card is fast and easy with Arkansas Marijuana Card.
Doctors Who Care. Relief You Can Trust.
At Arkansas Marijuana Card, our mission is helping everyone achieve wellness safely and conveniently through increased access to medical marijuana. Our focus on education, inclusion, and acceptance will reduce stigma for our patients by providing equal access to timely information and compassionate care.
Call us at (877) 303-3117, or simply book a medical marijuana evaluation to start getting relief you can trust today!