Minnesota: Lawmakers Approve Marijuana Sales Tax Hike

Members of the state Senate approved legislation during a special session today to increase the special sales tax on marijuana products by 50 percent.

Under the proposal, which now awaits final approval from Democratic Gov. Tim Walz, consumers will pay a 15 percent special sales tax on retail cannabis purchases. That will be addition to the existing 6.875 percent state sales tax.

The bill also repeals existing language requiring the state to share 20 percent of cannabis tax revenue with local governments.

Lawmakers passed legislation in 2023 legalizing the adult-use cannabis market, but regulators have yet to license any retail operators.

NORML opposes the proposed tax increase. In an legislative alert that has been shared hundreds of times with Minnesota lawmakers, NORML states: “Minnesotans already pay a premium tax on retail cannabis products. Raising these taxes even higher will undoubtedly drive prices out of reach for some consumers. This will push consumers back to the unregulated market, thereby undermining the primary goal of legalization, which is to provide adults with safe, affordable, above-ground access to lab-tested products of known purity, potency, and quality.”

Earlier this year, Maryland lawmakers approved a budget bill increasing the special sales tax imposed upon cannabis-related goods from the cannabis sales tax from 9 percent to 12 percent.

Several other states — including California, Michigan, New Jersey, are considering imposing significant tax hikes on legally available marijuana products.

Are you among the tens of thousands of reform advocates who have contacted their elected officials this year? A state-by-state guide to pending marijuana legislation and NORML action alerts is available from NORML’s Take Action Center.