Latest news with #recreationalmarijuana
CBS News
21-05-2025
- Business
- CBS News
Minnesota cannabis industry hopefuls, advocates rally outside governor's office in protest of proposed sales tax hike on sales
Cannabis industry hopefuls and advocates rallied at the capitol on Wednesday in protest of a proposed tax hike on retail sales before the legal market is even off the ground. The 2023 law greenlighting recreational marijuana implemented a gross receipts tax of 10% on sales at licensed businesses. DFL Gov. Tim Walz and legislative leaders announced a budget deal last week that increases the rate to 15%. That's on top of the state sales tax rate of 6.875% and any local sales taxes. And it applies to low-dose, THC edibles derived from hemp, too. The group of about two dozen people chanted "stop the tax, start the market" outside Gov. Tim Walz's office, as key lawmakers behind closed doors worked to finalize the remaining parts of the next two-year state budget that they didn't pass before Monday's end-of-session deadline. Leili Fatehi with cannabis consulting firm Blunt Strategies said high taxes means higher prices for consumers, which puts legal businesses at a disadvantage compared to the illicit market. "It feels like a real betrayal, both to the folks that have been very patiently waiting to enter the legal market, but also a really bad public policy decision," said Fatehi, noting the change would also eliminate revenue-sharing with local governments that will handle some of the enforcement of the law. The state's General Fund rakes in 80% of the revenues from cannabis and cities and counties get the remaining 20%. Fatehi and others hope lawmakers will reverse course before any legislation is final, but both the House and Senate negotiators included the increase in their tax packages they are refining this week before the official special session. Supporters of the move say the new rate brings Minnesota more in line with other legal cannabis states. "There are not across-the-board tax increases," said House Speaker Lisa Demuth, R-Cold Spring, during the budget deal announcement last week. "There will be a small increase on the tax on cannabis, that is almost right-sizing it. It was very low. We were one of the very low tax states on cannabis." Cannabis taxes vary from state to state, with rates from as low as 6% to as high as 37% in Washington, according to an analysis by the Tax Foundation. About half of those states have taxes higher than 10%. The proposal comes as the state is nearing market launch. June 5 is the date set for a lottery to choose who will receive one of the capped license types, like growers and retailers. Other types of businesses that don't fall under certain categories and received approval from the Office of Cannabis Management can move forward and prepare to begin operations, like securing a location cleared by local governments. Still, Fatehi—who worked closely on the 2023 legalization bill—believes there will be a months-long delay before businesses start opening. "I anticipate that we will see some state licensed retailers opening up in 2025," she said "It's likely going to be in the back half of the year." The first dispensary is set to open soon in Moorhead after the state entered into a compact with White Earth Nation allowing them to open eight dispensaries off of the reservation. Tribal nations have been able to sell legal cannabis on their land because of their sovereignty. Under the agreement, off-reservation sales will be subject to all of the taxes other businesses face, as well as state regulators' rules for safety.
CBS News
21-05-2025
- Business
- CBS News
White Earth Nation gets approval to open cannabis shops off tribal land
Tribal nation gets green light to open cannabis dispensaries across Minnesota Tribal nation gets green light to open cannabis dispensaries across Minnesota Tribal nation gets green light to open cannabis dispensaries across Minnesota An agreement between the state of Minnesota and White Earth Nation gives the tribal nation the green light to open cannabis dispensaries across the state. On Tuesday, Gov. Tim Walz signed the first tribal-state compact authorized under Minnesota's 2023 cannabis law. According to Minnesota's Office of Cannabis Management (OCM), the agreement allows the White Earth Nation to open up to eight dispensaries outside of Tribal lands. OCM says sales of cannabis products off tribal lands are subject to all state and local taxes. The 2023 law greenlit recreational marijuana with a gross receipts tax of 10% on sales at licensed businesses. A budget agreement announced May 15 would raise it to 15%. The approved tax hike would be in addition to the state sales tax rate of 6.975% and any local sales taxes. This applies to low-dose, THC edibles derived from hemp, too. White Earth Nation has plans for locations in Moorhead and St. Cloud. OCM says with the compact signed, tribal dispensaries can open their doors to the public.
CBS News
16-05-2025
- Business
- CBS News
Cannabis products in Minnesota would see a tax hike from 10% to 15% under budget agreement
Minnesota's legal adult-use cannabis market isn't operating yet. But before the first retail sales even begin, cannabis flower and edibles could see a tax hike under a bipartisan deal approved by legislative leaders. The 2023 law greenlit recreational marijuana with a gross receipts tax of 10% on sales at licensed businesses. The budget agreement announced Thursday would raise it to 15%. The approved tax hike would be in addition to the state sales tax rate of 6.975% and any local sales taxes. This applies to low-dose, THC edibles derived from hemp, too. "There are not across-the-board tax increases," said House Speaker Lisa Demuth, R-Cold Spring. "There will be a small increase on the tax on cannabis, that is almost right-sizing it. It was very low. We were one of the very low tax states on cannabis." Cannabis taxes vary from state to state, with rates from as low as 6% to as high as 37% in Washington, according to an analysis by the Tax Foundation. Advocates and businesses fear a 15% surcharge would make legal cannabis too expensive and therefore allow the illicit market to thrive. "When we legalized adult-use cannabis, we talked about how this is not a cash cow," said Sen. Lindsey Port, DFL-Burnsville, one of the authors of the cannabis law, during a conference committee hearing Friday. "It is not an answer to the state budget's concerns. I am frustrated to see it is being used in that way because it will not be successful." Port blamed Republicans for the change instead of raising revenues elsewhere. It comes as the state's regulatory agency is nearing market launch. June 5 is the date set for a lottery to choose who will receive one of the capped license types, like growers and retailers. Other types of businesses that received approval from the Office of Cannabis Management and don't fall under certain categories can move forward and prepare to begin operations, like securing a location cleared by local governments. The budget framework approved by leaders on Thursday has not yet been approved by the Legislature. Lawmakers will work through the weekend to finalize the details of the next two-year spending plans.
Yahoo
14-05-2025
- Politics
- Yahoo
Marijuana backers fight Florida's new ballot restrictions law in court
The Brief Smart & Safe Florida has joined a lawsuit challenging Florida's new law restricting citizen ballot initiatives. Critics say the law imposes unconstitutional limits on political speech and grassroots petition efforts. The group is pushing to legalize recreational marijuana and allow home cultivation for medical use by 2026. ORLANDO, Fla. - Supporters of a renewed push to legalize recreational marijuana in Florida have joined a lawsuit challenging a new state law they say places "draconian restrictions" on the constitutional right of citizens to place initiatives on the ballot. What we know Smart & Safe Florida, the group pushing to legalize recreational marijuana in Florida, has joined a federal lawsuit against a new state law (HB 1205) that overhauls the ballot initiative process. Signed into law by Gov. Ron DeSantis on May 2, the measure imposes immediate and sweeping restrictions that critics say severely limit Floridians' ability to propose constitutional amendments. Among the changes: tighter restrictions on who can gather signatures, criminal penalties for exceeding petition limits, a drastic reduction in the time allowed to submit completed petitions, and a controversial ban on sponsoring more than one amendment at a time. What we don't know It remains unclear how courts will interpret and rule on the constitutionality of HB 1205. The timeline and scope of the ban on multiple amendment sponsorships are also vague, with no clear guidance on whether it applies indefinitely or only during active campaigns. It's also uncertain whether Smart & Safe Florida will be able to gather the nearly 880,000 valid signatures required by the Feb. 1 deadline to qualify their proposal for the 2026 ballot — or if they'll need to shift their efforts to 2028. The backstory The new law follows heated political battles over high-profile ballot initiatives in the 2024 election cycle, including failed efforts to legalize recreational marijuana and enshrine abortion rights in the state Constitution. Those proposals drew fierce opposition from DeSantis and Republican legislators, who have since pushed to tighten rules around the initiative process. The Florida Chamber of Commerce and other conservative groups have supported these changes, arguing that complex policy matters should be left to lawmakers, not voter referendums. What they're saying The legal challenge is not just about marijuana — it's about who gets to shape Florida's Constitution. The case raises broad First Amendment issues, including the rights to political speech, association, and direct democracy. "This wolf comes as a wolf," wrote Smart & Safe Florida's legal team, quoting the late Justice Antonin Scalia to argue that the new law presents a clear, direct threat to citizen rights under the guise of protecting ballot integrity. Critics say the law is part of a pattern by state leaders to suppress citizen-driven change and consolidate policymaking within the Legislature. "The most burdensome of those changes took effect immediately... with no warning nor opportunity to appropriately prepare," wrote attorneys for the group, calling the timing both unfair and unconstitutional. As a result, this fight could set significant precedent not only in Florida but potentially for other states watching how far governments can go in regulating grassroots political activism. "Mandating an arbitrary and severely truncated delivery deadline... sets sponsors up for failure," the group argued, accusing lawmakers of intentionally undermining quality control measures and increasing the risk of costly penalties. The group further described the ban on sponsoring multiple amendments as "an outright ban on core political speech bearing zero relation to ballot integrity," and criticized the law's vagueness as a legal minefield for initiative sponsors. Meanwhile, supporters of the law maintain that the changes are necessary to prevent fraud and ensure only qualified individuals handle the petition process. However, those arguments were labeled "gaslighting" by the marijuana campaign's attorneys. STAY CONNECTED WITH FOX 35 ORLANDO: Download the FOX Local app for breaking news alerts, the latest news headlines Download the FOX 35 Storm Team Weather app for weather alerts & radar Sign up for FOX 35's daily newsletter for the latest morning headlines FOX Local:Stream FOX 35 newscasts, FOX 35 News+, Central Florida Eats on your smart TV The Source This story was written based on information shared by The News Service of Florida, and Smart & Safe Florida.
CBS News
08-05-2025
- Business
- CBS News
The Pennsylvania House advanced a bill legalizing recreational marijuana. What happens next?
Pennsylvania took a step toward legalizing recreational marijuana. On Wednesday, Democrats in the state House voted unanimously to advance a bill legalizing recreational marijuana for Pennsylvanians 21 or older over unified opposition from Republicans. Pennsylvania medical marijuana bill According to a Democratic sponsor of the bill, it has the potential to bring in $600 million in state revenue. For some Republicans, the method of bringing that money in is not negotiable. It's similar to the state store model, and they don't want to do that. "The toothpaste is already out of the tube," Democratic state Rep. Dan Frankel said. Frankel said a state store model was viewed as the best option, and there is proven success with the model in places like Quebec, Canada. He said the longer the state waits, the longer illegal or quasi-legal markets cash in, adding there is no public health supervision of those markets. "You go right next door, you'll see a sign on the street with a big marijuana leaf saying no medical card needed here. We need to regulate that. That's a public health hazard," Rep. Frankel said on Thursday. Wednesday's bill passed along party lines, and Republicans hold control of the state Senate. The bill will first go to the Law and Justice Committee. Republican state Sen. Devlin Robinson is on the committee. He said the process will slow down, as a complaint from the state House was that the bill was rushed through. Republicans feel they didn't get a good chance to read the full bill before voting. "With something so important and so large coming to the state, we need a little bit more time," Robinson said. While he is not as open to legalization, he says other Republicans, including the committee's chair, are open to legalization. If there is any advancement of the bill, it will be with significant changes, some of which include creating an alternative to the current one, which creates separate state stores to sell marijuana from the current wine and liquor state stores. "We are going to have to build stores across the entire Commonwealth. So, that takes a lot of money," Sen. Robinson. Rep. Frankel said he expects changes but hopes conversations can continue between the state House and state Senate to ultimately come up with an agreement. "What is your idea? Send us something," Rep. Frankel said. Governor Josh Shapiro has been a proponent of legalizing marijuana and pushed to get the General Assembly to pass legislation as part of his budget proposal.
