In an agreement on Monday, Massachusetts State House and Senate have decided that they would allow retail pot sales to be taxed at a maximum 20% rate in the state.
The deadline had been June 30th, but talks had extended past that date as legislative leaders looked for a compromise and were still negotiating an agreement.
It was a six-member conference committee that made the decision. The House had proposed a total tax on marijuana to be 28% while the Senate’s bill called for the tax to stay at a cap of 12%.
The compromise that was negotiated means Massachusetts consumers will have to pay 10.75% excise tax in addition to the regular 6.25% sales tax. Cities and towns have the option of adding another 3% for local tax.
House Majority Leader Ron Mariano said the compromise was a “fair compromise” and said the local option taxes would encourage municipalities to embrace marijuana businesses.
