An Arkansas Senate committee on Wednesday endorsed a bill that would extend for two years the sunset date for the 2017 state law mandating all sellers of medical marijuana collect and remit the special 4% privilege tax on sales.
The Senate Revenue and Taxation Committee recommended Senate approval of Senate Bill 465, by Sen. Jonathan Dismang, R-Beebe.
The state Department of Finance and Administration projected that the bill would raise $13.3 million in tax collections, with $12.4 million deposited to the University of Arkansas for Medical Sciences National Cancer Designation Trust Fund in fiscal 2022 that begins July 1.
Act 580 of 2019 aimed to use funds raised from medical-marijuana taxes and new tobacco taxes to help UAMS in its attempt to get a National Cancer Institute designation.
UAMS received $9.1 million in fiscal 2020 that ended June 30 as a result of Act 580 of 2019, said finance department spokesman Scott Hardin after the committee meeting. The $9.1 million is a combination of revenue from the 4% medical-marijuana privilege tax along with the additional 50-cent tax on cigarette papers, he said.
When a patient makes a purchase at a marijuana dispensary, the 6.5% state sales tax applies along with the 4% privilege tax for a total of 10.5% in state taxes, Hardin explained. When a cultivator sells to a dispensary, the 4% tax applies, but the 6.5% tax…
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An Arkansas Senate committee on Wednesday endorsed a bill that would extend for two years the sunset date for the 2017 state law mandating all sellers of medical marijuana collect and remit the special 4% privilege tax on sales.
The Senate Revenue and Taxation Committee recommended Senate approval of Senate Bill 465, by Sen. Jonathan Dismang, R-Beebe.
The state Department of Finance and Administration projected that the bill would raise $13.3 million in tax collections, with $12.4 million deposited to the University of Arkansas for Medical Sciences National Cancer Designation Trust Fund in fiscal 2022 that begins July 1.
Act 580 of 2019 aimed to use funds raised from medical-marijuana taxes and new tobacco taxes to help UAMS in its attempt to get a National Cancer Institute designation.
UAMS received $9.1 million in fiscal 2020 that ended June 30 as a result of Act 580 of 2019, said finance department spokesman Scott Hardin after the committee meeting. The $9.1 million is a combination of revenue from the 4% medical-marijuana privilege tax along with the additional 50-cent tax on cigarette papers, he said.
When a patient makes a purchase at a marijuana dispensary, the 6.5% state sales tax applies along with the 4% privilege tax for a total of 10.5% in state taxes, Hardin explained. When a cultivator sells to a dispensary, the 4% tax applies, but the 6.5% tax…
