CNR: Draft remarks for NC Hearing June 12
Hemp drugs: Hearing Wednesday 2 EDT in North Carolina, streamed at https://ncleg.gov/LegislativeCalendarEvent/132863#videoHeader
Constructive comments welcomed. Sometimes they let the public speak.
Mr. Chairman, Thank you.
My name is Pat Oglesby. I’m a lawyer with the Center for New Revenue in Chapel Hill. Some of you all are old enough to remember Bob Dole and Lloyd Bentsen. I was a staffer for the nonpartisan Joint Committee on Taxation when they chaired it. I’ve been a paid advisor to several states on cannabis tax policy.
As you’re discovering, hemp-derived cannabinoids create both costs and externalities. That’s why North Carolina should tax these substances – ideally by THC content – as part of a comprehensive cannabis strategy.
Louisiana, Minnesota, Tennessee, and West Virginia are four states that already collect extra excise taxes on these substances. Taxes that range from 3 percent to 11 percent of retail price.
But that’s just one approach. An alternative and more effective tax is one being used in Connecticut, Illinois, and all Canadian provinces. They tax legalized cannabis products by the volume of THC they contain. This THC tax aims straight at the target you want to hit.
Whichever taxes you choose — taxes based on price or taxes based on THC levels – there’s a risk of overdoing it. If you tax too heavily, illicit sellers will bypass the tax and you won’t get the revenue you hope for. I don’t work for industry, but I do know that other states have learned this lesson the hard way: Overtaxing backfires.
The journey you’re on won’t be easy. But please know that I will do what I can to help.
#CBD #Hemp
June 11, 2024 11:10 pm