Recreational cannabis excise taxation in the USA: Constructing a comparable tax measure for empirical analysis.

ABSTRACT:

Background

As of August 2023, 20 states in the US have established recreational cannabis retail markets and impose excise taxes on these products. However, there is significant heterogeneity in the bases (i.e., characteristics that taxes are applied to, such as price, weight, and potency), rates, and collection points (e.g., cultivation vs. wholesale) of excise taxes on recreational cannabis across states.

Methods

We constructed a novel cannabis excise tax measure in $ per flower oz, which is comparable across different tax bases. Specifically, ad valorem excise taxes based on wholesale and retail prices and THC-based taxes were converted to excise taxes ($) per oz using monthly state-level prices between 2014 and 2023. We also calculated tax incidence (i.e., taxes as a perc

SUBMITTER: Park H 

PROVIDER: S-EPMC11706241 | biostudies-literature | 2024 Dec

REPOSITORIES: biostudies-literature