Those participating in Alaska’s legal marijuana industry are calling for tax relief amid plummeting prices, reports the Associated Press.
Leif Abel, the owner of Alaska’s Greatland Ganja, says that despite doing well, he’s still living “paycheck to paycheck”. He says his greenhouse expansion is behind schedule, and he said the company could have hired more crews to work on it if taxes and other expenses weren’t so high.
“We don’t have enough of a cushion where we could comfortably have a crop failure, and that’s not a very safe place for a cultivation company to be,” says Abel, who is among a number of Alaska cannabis growers who have struggled to pay the state’s marijuana tax – $50 per ounce – as overall prices have tumbled. He said he’s paid his taxes on time, but it hasn’t always been easy.
According to Alaska’s Department of Revenue, 45 growers in the state are delinquent, compared with six in 2018. For the June 2019 tax filing period, more than 160 growers had filed a tax return with the state.
As noted by the AP, cannabis tax is imposed on cultivators when marijuana is sold or transferred from a grow facility to