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East Coast Cannabis Legalization History and Tax Quick Facts
East Coast Cannabis Legalization
East Coast Cannabis Legalization and Tax Quick Facts
The number of states that are legalizing the adult use of cannabis is increasing every year. It’s a little known fact that Texas was actually the first state to decriminalize cannabis back in 1973. California took revolutionary steps in 1996 by passing the Compassionate Use Act which permitted adult use of medicinal marijuana. California opened the gates for an increasing number of states to reconsider their cannabis laws and to hopefully amend some of the past wrongs of the legal system with regards to cannabis.
6 Most Recent East Coast State Updates
Maine, Vermont, Massachusetts, and most recently New Jersey and New York have legalized the use of cannabis for medicinal and recreational use for adults over 21. Delaware, Maryland and Virginia are well on their way to moving from medicinal only to fully legalized.
Quick History and Tax Facts
New Jersey (Marijuana Policy Project, 2021)
· Legalized the medicinal use of Cannabis in 2010 and in late 2020/early 2021 the governor of New Jersey signed into law bills that eliminates the criminality for the possession and use of marijuana.
· The bills also reduce barriers to entry for parties that have been more harshly penalized for cannabis related offenses.
· Sales Tax at various levels of cannabis production, wholesale and retail not to exceed 2%
New York (Marijuana Policy Project, 2021)
· Decriminalized cannabis in 1977. In 2014, NY legalized the medicinal cannabis. The state legalized the recreational use of cannabis in March 2021.
· NY laws also allow residents to have up to 12 plants per household.
· NY imposed 2 levels of tax- one based on the potency that will be imposed on growers and sales tax on distributors at a level of 13%. The tax revenue is expected to go to community reinvestment.
Delaware (Marijuana Policy Project, 2021)
· In 2011, DE legalized the medicinal use of Cannabis and decriminalized Cannabis in 2015.
· As of April 2021, House Bill 150, which hopes to make recreational use of cannabis legal for adults 21 and over and expunge the records of previously convicted persons for marijuana related offenses.
· All retail sales would have a 15% tax applied in addition to various licensing and application fees
Maryland (Marijuana Policy Project, 2021)
· In 2002, MD reduced penalties for medicinal use and decriminalized Cannabis in 2014
· Legalization for recreational use for adults 21 and over is on standby until 2022
· Sales tax would be step level: first 1-2 years15% sales tax, increasing to 20% for years 3-4 with a max of 25% in addition to a local sales tax of 3%
Virginia (Marijuana Policy Project, 2021)
· In 1979, VA decriminalized the medicinal use of cannabis and legalized recreational use of cannabis in 2021
· VA Bill 2312 lays out a new system for regulation of adult use of cannabis and moves to expunge low level cannabis offenses and provide grants to communities most impacted by the “war on drugs”.
· State tax of 21% would be imposed at retail sale in addition to 6% state sales tax. Municipalities could impose up to a 3% tax.
Pennsylvania
· In 2016, PA legalized Cannabis for medicinal use and the current state administration is noted to be making the legalization of recreational cannabis use a priority for 2021.
· It is likely, PA will impose various administrative and application fees in addition to a 5% sales tax.
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