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A6 U.S. NEWS
Wednesday 28 august 2019
Alaska's licensed marijuana growers cite tax concerns

By BECKY BOHRER lowed the state to establish
Associated Press lower rates for certain parts
JUNEAU, Alaska (AP) — of the plant, which officials
Alaska marijuana grower have done, a rewrite of the
Leif Abel considers his busi- tax is considered up to the
ness successful but still feels Legislature.
like he's living "paycheck Surveys are planned to
to paycheck" much of the gauge industry represen-
time. tatives' thoughts, Carrigan
A greenhouse expansion is said.
behind schedule, and he "We're trying to figure out
said the company could ... where the sweet spot is
have hired more crews to with that," he said, with fair-
work on it if taxes and other ness among growers, retail-
expenses weren't so high. ers and manufacturers a
"We don't have enough of key consideration.
a cushion where we could Dane Wyrick said the future
comfortably have a crop of his Anchorage cultiva-
failure, and that's not a very tion and retail business is
safe place for a cultivation hazy after feeling squeezed
company to be," said Abel, Alaska marijuana grower Dane Wyrick poses for photos at his Danish Gardens cultivation and by state taxes and other
an owner of Greatland retail location in Anchorage, Alaska, Monday, Aug. 26, 2019. expenses. He said the tax,
Ganja in the Kenai Penin- Associated Press combined with production
sula community of Kasilof. expenses and other fac-
Abel is among a number nabis, Alaska is the only it's really hard to get out tax payment programs." tors, is too burdensome.
of Alaska pot growers who one whose tax structure is when the holes keep get- The tax generated antici- Some industry officials and
have struggled to pay the built solely on a fixed dollar ting deeper underneath pated revenue of about advocates hope for a sym-
state's $50-per-ounce can- amount paid by growers, you," said Jana Weltzin, an $1.8 million for the state pathetic ear in Alaska's Re-
nabis tax as marijuana pric- according to information attorney who represents in June. Three-quarters of publican governor, Mike
es have tumbled. He said compiled by the Pew Char- Alaska cannabis interests. state pot revenue is intend- Dunleavy, who has adopt-
he's paid his taxes on time, itable Trusts, a public policy When the industry first start- ed to be used for recidivism ed an open-for-business
but it hasn't always been organization. Alaska has no ed, prices were around programs and a marijuana mantra.
easy. statewide sales tax, though $4,000 a pound (0.45 kilo- education and treatment Dunleavy frustrated the in-
Forty-five growers in the some municipalities, like gram), said Cary Carrigan, fund. dustry earlier this year by
state are delinquent, com- Anchorage, levy their own executive director of the Kelly Mazzei, excise tax appointing to a marijuana
pared to six a year ago, ac- sales tax on weed. Alaska Marijuana Industry manager with the Revenue regulatory board a wom-
cording to figures provided By comparison, California Association, a trade group. Department, in a letter to an who was involved in a
by Alaska's Department of has a fixed dollar amount They have settled around marijuana regulators earlier failed effort to ban can-
Revenue. For the June tax cultivators must pay and $2,300 a pound, he said. this year called the number nabis operations in Fair-
filing period, more than 160 has a 15% tax on retail While the price was ex- of late accounts alarm- banks. After lawmakers
growers had filed a tax re- sales. Local governments in pected to decline, "no one ing. The tax debt doesn't rejected the appointment,
turn with the state. that state can add a levy anticipated that the floor go away if a business goes Dunleavy picked a former
The cannabis tax is im- on top of the state tax on would drop that low, to the under, she told The Associ- board member who sup-
posed on cultivators when retail sales. Nevada has a point where if you paid your ated Press. ported the legalization ef-
pot is sold or transferred percentage-based tax that taxes on time you would Many in the industry blame fort and who Carrigan con-
from a grow facility to a re- also applies to growers. not have enough money the tax, though some also siders a good choice.
tail shop or product manu- In Alaska, the total amount to pay your employees or see an unlimited number Assistant Commerce Com-
facturer. There is a lesser of late taxes due, with ac- your electric bill or some- of licensees as part of the missioner Amy Demboski
tax rate for immature bud cruing penalties and inter- thing else would suffer," he problem. Oregon officials has convened a work
and trimmings. est, is about $1 million, ac- said. "That's why there are cited that state's issue with group with industry inter-
Among states that have cording to the department. so many delinquencies and unlimited licenses after a ests, regulators and the
legalized recreational can- "When you get into a hole, people that are working on massive oversupply of mari- Revenue Department to
juana led to a freefall in discuss what they see as
prices. business impediments, with
Oklahoma group challenges move to Weltzin said Alaska is not in taxes among the issues
that situation yet, but it's a raised, Glenn Hoskinson, a
block permitless carry law concern. special assistant to Com-
"Hopefully, we can get a merce Commissioner Julie
system figured out where Anderson, said by email.
OKLAHOMA CITY (AP) — efforts are now underway "Citizens of the state of we have a more fair tax "This process is still in its in-
The Oklahoma Second for a statewide referendum Oklahoma have been structure and a more strin- fancy, so it's too early to
Amendment Association on the measure. waiting on this for over 112 gent licensing process, so know if there is going to be
is challenging efforts that The Oklahoman reports years and it's time for them it will give value to our ex- any proposal or anything of
would put on hold a new that the association filed to get their rights back," he isting businesses but still substance from this working
permitless carry law until a legal challenge Monday said. "I say to the naysayers, encourage new business group," Hoskinson wrote.
voters weigh in on the issue. to the wording of the ref- I say to the individuals who growth," she said. Carrigan sees this as an ef-
The law passed earlier this erendum petition, calling cite the Second Amend- Alaska's $50-an-ounce fort to move forward with
year will allow Oklahoma it inaccurate and mislead- ment, who indicate they (28 grams) tax was set by the administration: "When
residents to openly carry ing. Second Amendment believe in the Constitution, the 2014 voter initiative somebody holds out an
guns without a background Association President Don what's more enshrined in that legalized recreational olive branch and wants to
check or training. The new Spencer called the state- the Constitution than the marijuana for those 21 and move forward, you don't
law takes effect Nov. 1, but wide vote a waste of time. right to vote?" he said.q older. While the initiative al- slap their hand."q