In Anchorage, Alaska, the Alaska Department of Revenue’s Tax Division has started to receive its first batch of cash tax payments on legal cannabis sales and transfers.
“We’re proud to be able to come in and pay our first marijuana tax. It’s something that we’ve been we’ve been (sic) working toward for between two and three years now so it’s nice to finally reach this day,” said Lief Able of Greatland Ganja in Kasilof, as reported by KTUU. “It’s kind of as big of a day as our first sale was to us.”
In Alaska, cannabis bud and flower are taxed at $50 an ounce, with the rest of the plant taxed at $15 an ounce. According to KTUU, Able paid $5,600 in taxes on Nov. 30 for his first month of sales, making him the second licensed cannabis business to pay his cannabis company’s taxes in cash. The first cash tax payment was made on the evening of Nov. 29.
According to the Alaska Department of Revenue’s Tax Division, licensed cannabis businesses can pay their taxes electronically via Revenue Online, wire transfer, check or cash. However, access to banking has been difficult for state-legal cannabis businesses, so those without bank accounts have to follow detailed instructions for mailing cash tax payments to the Tax Division office or depositing them in the secured drop box at the Permanent Fund Dividend office in Anchorage.
“My retailers pay me mostly in cash and right now the banks won’t give Greatland Ganja a bank account, the credit unions won’t give Greatland Ganja a bank account,” Able explained. “And so unless I want to do some sort of financial acrobatics, I have cash and that’s what I have to give to the state.”