This section authorizes municipalities to adopt ordinances imposing a “transfer tax” on cannabis sales on licensed cannabis establishments (see definition in Section 3, page 4, lines 13-16).
Municipalities may enact a local tax up to:
- 2% of the receipts from each sale by a cannabis grower, cultivators (Class 1 license);
- 2% of the receipts from each sale by a cannabis processor (Class 2 license);
- 1% of the receipts from each sale by a cannabis wholesaler (Class 3 license); and/or,
- 3% of the receipts from each sale by a cannabis retailer (Class 4).
Thus, the municipality may enact the appropriate transfer tax on any of the licensed cannabis establishments located in the municipality.
These taxes are in addition to the State cannabis excise tax of $42 per ounce. Please note that no local transfer/user tax can be imposed on medical marijuana.