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Marijuana Tax

Frequently Asked Questions





Sections:
  • General

  • Tax Returns

  • Payments



  • General

    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?
    Do I owe tax on marijuana that I send to be tested?
    Some of my product was returned. Can I get a refund of the tax I paid?
    Are clones taxable?


  • Who is liable for the excise tax on marijuana?

  • A marijuana cultivation facility (standard or limited) is liable 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 (https://online-tax.alaska.gov) 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 ounce and trim is taxed at $15 per ounce. A new rate has been added at $25 per ounce for bud/flower that is considered immature or abnormal. This is bud/flower that didn't 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.

  • Do I owe tax on marijuana that I send to be tested?

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

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

  • You may claim a credit for 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.

  • 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.

    Tax Returns

    How do I file the tax return?
    How do I register on Revenue Online?
    When are the tax return and payment due?
    What happens if I don’t file a tax return or make a payment?
    What information do I need to file my tax return?
    Can I upload a report instead of typing out each transaction on the tax return?
    I didn’t have any taxable sales or transfer this month. Do I need to file a tax return?


  • How do I file the tax return?

  • Tax returns must be filed electronically using Revenue Online (https://online-tax.alaska.gov). If you have multiple marijuana cultivation facilities, you must file a separate tax return for each location.

  • How do I register on Revenue Online?

  • Please see the registration instructions.

  • When are the tax return and payment due?

  • The tax return and payment are due on or before the last day of the month following the month of the sale or transfer of marijuana. For example, the tax return and payment for marijuana sold or transferred in July is due August 31. If the due date falls on a weekend or holiday, the due date is the next business day.

  • What happens if I don’t file a tax return or make a payment?

  • Failure to file a return or submit a payment by the due date can result in a 5% civil penalty being assessed for every 30 day period, or portion of a period, until the return is filed and the payment is made. The penalty cannot exceed 25%. Other civil penalties may apply. In addition, the Tax Division may notify the Marijuana Control Board to initiate license suspension or revocation proceedings.

  • 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 and ounces of the remainder of the plant that were sold or transferred.

  • Can I upload a report instead of typing out each transaction on the tax return?

  • Yes, an Excel template is available on our website under Online Services and can be uploaded directly into your tax return.

  • I didn’t have any taxable sales or transfer this month. Do I need to file a tax return?

  • Yes. You must file a tax return every month, even if you didn’t have any taxable transactions. The tax return in Revenue Online makes it easy for you to file a zero transaction tax return.

    Payments

    How do I make a 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?
    I overpaid my tax. How will I get my refund?


  • How do I make a payment?

  • Payments may 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.

  • How do I make a cash payment?

  • Please see the cash payment instructions.

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

  • Unfortunately, that is the only way to make a cash payment 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.

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

  • The Department will apply any overpayments to the next tax period to offset the tax liability.