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Marijuana Tax

Frequently Asked Questions





Sections:
  • General Questions

  • Tax Returns and Payments



  • General Questions

    Who is liable for the excise tax on marijuana?
    I just received a marijuana cultivation facility license. Now what do I do?
    How much is the tax?
    I have a marijuana cultivation facility license and a marijuana product manufacturing facility and/or retail marijuana store license. Do I owe tax for the marijuana I transfer to my other licenses?
    I have a marijuana cultivation facility and I bought marijuana from another cultivation facility. Who owes the tax?
    Are samples sent to a testing facility taxable?
    Are samples sent to a retail store or product manufacturing facility taxable?
    Are clones taxable?
    Some of my product was returned. Can I get a refund for the tax I paid?


  • Who is liable for the excise tax on marijuana?

  • A marijuana cultivation facility (standard or limited) is labile for the excise tax on marijuana and must file a monthly tax return and pay the tax.

  • I just received a marijuana cultivation facility license. Now what do I do?

  • As a marijuana cultivation facility, you are liable for the excise tax on marijuana. You must register with the Tax Division using Revenue Online and file tax returns and pay all excise taxes.

  • How much is the tax?

  • Effective January 1, 2019, sales and transfers of marijuana are subject to new tax rates. Mature bud/flower are taxed at $50 per ounces and trim is taxed at $15 per ounce. A new rate has been added at $25 per ounces for bud/flower that is considered immature or abnormal. This is bud/flower that did not fully mature or develop, contains seeds, or failed testing. Clones are taxed at a flat rate of $1 per clone and not on the estimated weight.

  • I have a marijuana cultivation facility license and a marijuana product manufacturing facility and/or retail marijuana store license. Do I owe tax for the marijuana I transfer to my other licenses?

  • Yes, the tax applies to the sale or transfer of marijuana. The marijuana is considered transferred as soon as it is recorded in the inventory system as belonging to the other licensee.

  • I have a marijuana cultivation facility and I bought marijuana from another cultivation facility. Who owes the tax?

  • The tax is not due on sales or transfers between cultivation facilities. The tax is due on the sale or transfer from a cultivation facility to a retail store or a product manufacturing facility and is owed by whomever makes the sale or transfer.

  • Are samples sent to a testing facility taxable?

  • No, marijuana sent to a licensed testing facility is exempt from the tax.

  • Are samples sent to a retail store or product manufacturing facility taxable?

  • Yes, any marijuana sold or transferred to a retail store or product manufacturing facility, including samples, is taxable.

  • Are clones taxable?

  • Yes. Effective January 1, 2019, clones are taxed at a flat rate of $1 per clone and not on the estimated weight.

  • Some of my product was returned. Can I get a refund for the tax I paid?

  • You may claim a credit for the tax paid for marijuana that is returned to you. You must attach proof that the tax was previously paid and that it was refunded to the purchaser.

    Tax Returns and Payments

    Who must file a tax return?
    I have more than one license. Can I file one tax return?
    When is the tax return due?
    What if the due date is on a weekend or holiday?
    I did not have any sales or transfers this month. Do I still need to file a tax return?
    How do I file my tax return?
    What information do I need to file my tax return?
    What happens if I do not file my tax return by the due date?
    When is the tax payment due?
    How can I make a tax payment?
    How do I make a cash payment?
    What if I cannot bring my cash payment to Anchorage?
    Can I bring my cash payment directly to the Tax Division’s office?
    What happens if I do not submit my payment by the due date?
    Will I be charged interest?
    I overpaid my tax. How will I get my refund?


  • Who must file a tax return?

  • Any with a marijuana cultivation facility license issued by the Marijuana Control Board must file a tax return.

  • I have more than one license. Can I file one tax return?

  • No. A separate tax return is due for each licensed facility.

  • When is the tax return due?

  • Tax returns are filed monthly. The tax return is due on the last day of the month following the month in which alcoholic beverages were sold in the state. For example, the tax return for sales made in March is due April 30.

  • What if the due date is on a weekend or holiday?

  • If the due date falls on a weekend or holiday, the tax return is due the next business day. A holiday means an Alaska state holiday or a bank holiday observed by the Federal Reserve System. Holidays include Seward’s Day in March and Alaska Day in October but do not include other states’ holidays such as Emancipation Day.

  • I did not have any sales or transfers this month. Do I still need to file a tax return?

  • Yes. A tax return must be filed each month, regardless of whether sales or transfers occurred or not. The tax return in Revenue Online makes it easy for you to file a zero transaction tax return.

  • How do I file my tax return?

  • Tax returns must be filed electronically using Revenue Online.

  • What information do I need to file my tax return?

  • You need the date of each sale; the name, Marijuana Control Board license number, and address of each buyer or transferee; and the number of ounces of bud and flower, ounces of immature bud and flower, ounces of trim, and number of clone.

    There is an Excel template available on our website under Online Services that can be filled out and uploaded directly into your tax return.

  • What happens if I do not file my tax return by the due date?

  • Returns that are not filed by the due date are subject to a failure to file penalty of 5% of the unpaid tax for each 30 day period or portion of a period the return is late, up to a maximum of 25%.

  • When is the tax payment due?

  • The tax payment has the same due date as the tax return. The weekend and holiday rule also applies to payments.

  • How can I make a tax payment?

  • Payments can be made by wire transfer, cashier’s check, money order, bank check, or cash. Automated Clearing House (ACH) debit payments are not available for marijuana tax payments at this time.

    Vouchers to include with your payment are available in Revenue Online and include all necessary instructions.

  • How do I make a cash payment?

  • Please see the cash payment instructions.

  • What if I cannot bring my cash payment to Anchorage?

  • Unfortunately, we are only able to accept cash payments in Anchorage at this time.

  • Can I bring my cash payment directly to the Tax Division’s office?

  • No. Cash payments will only be accepted at the drop box in Anchorage as described in the cash payment instructions.

  • What happens if I do not submit my payment by the due date?

  • If the full amount of tax is not paid when due, a failure to pay penalty of 5% of the unpaid tax may be assessed for each 30 day period or portion of the period the payment is late, up to a maximum of 25%.

    If during any period, or portion of a period, both the failure to file and failure to pay penalties are applicable, only the failure to file penalty is imposed.

  • Will I be charged interest?

  • Under Alaska Statute 43.05.225, interest will be assessed on any unpaid or delinquent tax. Interest is compounded quarterly at the applicable rate each quarter. See here for the current interest rate.

  • I overpaid my tax. How will I get my refund?

  • The Tax Division will apply any overpayments to the next tax period of offset the tax liability.