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Marijuana Tax
2018 Annual Report


Marijuana Tax Reports





AS 43.61

Description

Alaska levies a tax on marijuana sold in Alaska. Ballot Measure 2, the act to tax and regulate the production, sale, and use of marijuana, was passed Nov. 4, 2014. The Department of Revenue’s Tax Division collects the marijuana tax from licensed marijuana cultivation facilities.

The marijuana tax is imposed when marijuana is sold or transferred from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility.

Rates

The tax is $50 an ounce of marijuana bud and flower. The remainder of the plant is taxed at $15 an ounce. Beginning Jan. 1, 2019, a third rate will take effect through regulation. The new rate is $25 an ounce of immature or abnormal bud.

Returns

Taxpayers are required to file their tax returns electronically using Revenue Online.

Taxpayers file tax returns and make tax payments monthly. Returns and payments are due on or before the last day of the calendar month following the month when the marijuana sales or transfers took place.

Disposition of Revenue

The Tax Division deposits all revenue from the marijuana tax into the General Fund.

In 2016, the Alaska Legislature created a subfund within the General Fund, the Recidivism Reduction Fund, and directed the Alaska Department of Administration to separately account for 50% of the marijuana tax collected and deposit it into the Recidivism Reduction Fund. The Legislature may use the annual estimated balance in the fund to make appropriations to the departments of Corrections, Public Safety, and Health and Social Services for recidivism programs.

History

2014 – Ballot Measure 2, the act to tax and regulate the production, sale, and use of marijuana, was passed on Nov. 4, 2014. Pursuant to the ballot measure, Alaska will levy a tax on the marijuana sold in Alaska.

2016 – The Legislature passed Senate Bill 91, a comprehensive criminal reform bill, which included a provision that diverted half of the state's marijuana excise taxes to programs aimed at reducing repeat criminal offenders, under a newly created Recidivism Reduction Fund.

The Department of Revenue adopted a regulation that set the tax as $50 for any part of a marijuana bud or flower, and $15 for the remainder of the plant.

2018 – The Legislature passed Senate Bill 104, an education curriculum bill, which includes a provision that deposits 25% of the state’s marijuana excise taxes into the Marijuana Education and Treatment Fund, effective Oct. 28, 2018.

The department adopted changes to marijuana tax regulations in Title 15, Chapter 43 of the Alaska Administrative Code. The changes, which go into effect Jan. 1, 2019, add a third tax rate for immature or abnormal bud: $25 an ounce for buds or flowers that did not mature, that contain seeds or that failed testing because of mold. The changes stipulate that clones will be taxed at a flat rate of $1 per plant, and not by weight; and that packages of marijuana that contain a combination of any of the three tax rates will be taxed at the highest rate. The changes also added and updated definitions for different types and parts of the marijuana plant.




Click here for data with additional years.

  Collections Summary

Fiscal Year

2018 2017
   Total Tax

$10,801,357

$1,749,497

   General Fund

5,443,130 879,814

   Recidivism Reduction Fund

5,358,227 869,683


  Ounces

Fiscal Year

2018 2017

   Bud or flower sold or transferred

11,263 1,857

   Trim or other parts of plant sold or transferred

8,840 1,099
   Total

20,103

2,956


  Filing Information

Fiscal Year

2018 2017

   Number of Returns

1,196 218

   Number of Taxpayers

116 40




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