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Tax Foundation Comments to the Cannabis Administration and Opportunity Act

The Tax Foundation is pleased to submit comments on the cannabis excise tax provisions of the Cannabis Administration and Opportunity Act (CAOA). Tax Foundation is a nonpartisan, nonprofit research organization that has monitored fiscal policy at all levels of government since 1937. As a Section 501(c)(3) nonprofit, nonpartisan organization, we take no position on any […]

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States Projected to Post Higher Marijuana Revenues in 2021

With several states contemplating legalization of recreational marijuana, and federal lawmakers starting the process of federal descheduling, it is a good time to examine the tax implications of legalization. Taxes play a crucial role in the success of marijuana reform, as competitive prices in a licensed market are key to convert illicit consumption to the […]

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New Tax in Town? Federal Proposal to Deschedule and Tax Marijuana

Today, Senate Majority Leader Chuck Schumer (D), Senate Finance Committee Chairman Ron Wyden (D), and Sen. Cory Booker (D) released their discussion draft—the Cannabis Administration and Opportunity Act—for federal descheduling of marijuana. While federal descheduling impacts all states, it does not deschedule marijuana in states which choose to keep their own ban. Nevertheless, descheduling would […]

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Excise Tax Application and Trends

Table of Contents Key Points: In 2019, excise taxes accounted for less than 3 percent of total federal tax collections while state excise taxes on tobacco, alcohol, and motor fuel accounted for about 7 percent of total state tax revenue Taxes levied on a transaction or good that creates a negative externality or additional costs […]

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Facts and Figures 2021: How Does Your State Compare?

Was this page helpful to you? Thank You! The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work? Contribute to the Tax Foundation Share This Article! Let us know how we can better serve you! […]

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Join Us for a Free “State Tax Policy Boot Camp”

We’re about to launch a free six-week course in state taxation, and we’d like you to join us. This coming Tuesday, February 16th, the Tax Foundation will kick off its “State Tax Policy Boot Camp,” designed with lawmakers and legislative staff in mind, but ideal for anyone interested in gaining a better understanding of state […]

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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 […]