Supplemental Thoughts About Revenue from Marijuana in Vermont

Abstract

This document is a supplement to a study by the RAND Corporation for Vermont. It represents the views of the author alone, and not of RAND or of the study's other co-authors.It looks at several issues associated with marijuana revenue. First, who might get a break on marijuana taxes? Possibilities include medical card holders, home growers, buyers of favored products, growers that use natural sunlight, and small or large businesses. Second, how much tax can the marijuana market eventually bear? Third, who pays marijuana taxes – (what is the collection point?) – for three possible tax bases, weight, price, and THC potency? Fourth, what other issues might loom?