Bill
H 178
Overview: Bill H 178 would establish a local value added tax (VAT) on cannabis cultivation sales within the state.Purpose and Intent: The bill aims to generate additional revenue f
Overview: Bill H 178 would establish a local value added tax (VAT) on cannabis cultivation sales within the state.
Purpose and Intent: The bill aims to generate additional revenue for local governments from the cannabis industry. By implementing a VAT on the sale of cannabis from cultivators to retailers, the legislation seeks to provide a new funding source for municipal services and programs.
Key Provisions:
- Imposes a 5% VAT on all cannabis cultivation sales within the state
- Requires cannabis cultivators to collect and remit the VAT to the Department of Revenue
- Allocates the VAT revenue to the municipality where the cultivation facility is located
- Allows local governments to use the VAT revenue for general purposes, including public safety, infrastructure, and community development
Affected Parties and Impacts:
- Cannabis cultivators will be responsible for collecting and remitting the VAT
- Consumers may see a slight increase in cannabis prices due to the VAT
- Local governments will receive additional revenue to fund municipal services and programs
Procedural and Timeline Considerations:
- The bill is currently scheduled for a public hearing on June 17, 2025
- If passed, the VAT would take effect on January 1, 2026
Compiled from official sources — confirm details with the bill’s official record.
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