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New York Governor Proposes THC-based Tax on Recreational Marijuana

In his fiscal year 2022 budget proposal unveiled this week, New York Gov. Andrew Cuomo includes an excise tax on what could be legalized recreational marijuana. New York is looking to join neighboring New Jersey, where voters approved a ballot measure to legalize recreational marijuana last November. Gov. Cuomo expects the tax revenue to eventually […]

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State Tax Changes Effective January 1, 2021

Table of Contents Key Findings Twenty-six states and the District of Columbia had notable tax changes take effect. Arkansas and Iowa reduced their corporate income tax rates and made other substantive changes to their corporate income tax base. Arizona and New Mexico increased their top marginal individual income tax rates by adding another bracket. Arkansas […]

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Gross Receipt Taxes Become Part of New Jersey’s Recreational Marijuana Legalization

Thursday, the New Jersey Senate and Assembly passed bills (S21 and A21) legalizing recreational marijuana sales, as required since voters passed Question 1 on Election Day. Sales will begin after the Cannabis Regulatory Commission finalizes its rules and regulations. Sales of recreational marijuana in New Jersey will be taxed under the general state sales rate […]

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Taxes and New York’s Fiscal Crisis: Evaluating Revenue Proposals to Close the State’s Budget Gap

Executive Summary At first glance, New York faces projected budget shortfalls as arresting as the New York City skyline, and to meet the challenge, some have proposed taxes that would rival that skyline for staggering height. The challenge confronting policymakers is real, though perhaps not as dire as once feared. Its intensity depends on the […]

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New Jersey May Be the First State Without an Excise Tax Levy on Recreational Marijuana

Last week, New Jersey’s legislature took the first step towards making recreational marijuana legal when Senator and Majority Whip Nicholas P. Scutari (D) and Senate President Stephen M. Sweeney (D) introduced Senate Bill 21 (S21), New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act. If enacted, S21 would legalize and tax recreational marijuana in […]

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Election Analysis: Recreational Marijuana Now Legal in Four More States

Tuesday, voters in four states, Arizona, Montana, New Jersey, and South Dakota, approved ballot measures legalizing recreational marijuana. The vote was only close in one state, South Dakota. That raises the total to 15 states plus the District of Columbia that have legalized recreational marijuana one way or another. Recreational marijuana has been a hot […]

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State and Local Tax Ballot Measures to Watch on Election Day 2020

Featured Ballot Measures Arizona Proposition 207 Arizona Proposition 207 would legalize recreational marijuana and tax retail sales at 16 percent of retail price. Arizona forecasts roughly $166 million in excise tax revenue when the market has matured, and this revenue would be allocated to community colleges, police departments, fire departments, transportation funding, and a new Justice […]

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Voters in Four States to Vote on Recreational Marijuana

Legalizing recreational marijuana is a hot topic in many states where the state budgets are in disarray because of the coronavirus pandemic and new revenue sources are being sought. Combined with a desire to decriminalize marijuana, the zeitgeist is ideal for legalization. This Election Day, voters in Arizona, Montana, New Jersey, and South Dakota will consider legalization and […]

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New Census Data Shows States Beat Revenue Expectations in FY 2020

Key Findings State tax collections declined 5.5 percent in FY 2020 according to new Census data, though actual losses are likely to be significantly lower after accounting for the shifting of income tax collections into the current fiscal year due to delayed tax filing deadlines. After a sharp initial drop under stay-at-home orders, sales tax […]

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Flawed Federal Taxation of Recreational Marijuana

A House vote is expected this month on the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would de-schedule marijuana, expunge prior convictions, impose a federal excise tax on marijuana sales, provide access to capital for small marijuana businesses, and allocate revenue to people impacted by prior drug enforcement policies. While it is unlikely to […]