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Published on Friday, July 22, 2016

Marijuana revenue sharing begins second year

Next month eligible cities will begin receiving the second year of marijuana excise tax revenue distributions. Marijuana excise tax revenue sharing was adopted in 2015 and quarterly distributions began in September 2015. The state’s fiscal year 2017 began in July, and the distributions will again occur quarterly (September, December, March, and June). As spelled out in the 2015 legislation, cities and counties will share $6 million, with distribution amounts based on the taxable retail sales within each jurisdiction. Overall, counties will receive 60 percent and cities 40 percent. For cities, only jurisdictions containing retail sales outlets will receive funding.

Because revenue distributions are based on the taxable retail sales generated during the prior fiscal year, it is likely that revenue distributions for the coming fiscal year will be very different than last year. That is due to a number of new retailers opening up in different communities around the state, which changed the landscape for retail sales dramatically.

According to the Liquor and Cannabis Board (LCB), total marijuana sales in FY 2016 were $972,729,675 and the total tax obligation was $185,786,493. The LCB has issued 405 retail licenses. For more information on current retail locations and revenues, visit the LCB’s website.

Categories: Marijuana