Whoops! Minnesota Could Be Collecting More Money From THC Edibles
Now more than ever, there are lots of different ways Minnesota residents can legally purchase THC products. Whether in gummy form, liquid, or seltzers infused with hemp-derived THC, it was made possible by a recent law allowing small amounts in food and drinks.
Every time someone buys a THC product whether it is gummies, seltzer water, or other edibles there is a tax on it. According to an analysis by the University of Minnesota Duluth, the State of Minnesota is not making as much money on these products as it could because it did not implement an excise tax on these products like it does on alcohol or cigarettes.
The amount estimated in losses is around $5 million, and could be as much as $46 million by 2023. Whoops! That is a lot of additional money that could be funneled into the state. Monica Haynes, director of the Bureau of Business and Economic Research at UMD told WCCO TV "The states that have legalized [THC products] are seeing millions of dollars of benefits in their first year and then more and more over time."
So, what happens now? Rep. Heather Edelson, DFL-Edina who happened to author the law said she is already working on additional legislation to address taxes and state regulations. According to WCCO TV, she said: "It's an intricate process. There will be a gross sales tax on the products between 2-3%. An excise tax is yet to be determined but will be part of the bill."
With this law being so new it will just end up being a waiting game. Who knows maybe the state of Minnesota will impose as high a tax as they did on cigarettes, anything is possible. But for now, consumers are enjoying the current pricing in place.