The Oklahoma Tax Commission (OTC) reports that tax collections for medical marijuana retail transactions have sharply risen again, in June. This makes the 5th consecutive month of increase of at least 33% of the month prior. These sales are subject to a 7% special tax which the OTC deemed an 'excise tax'. The OTC is also demanding that each retail sale also pay all common local and state sales tax.
The legislature avoided correcting the loophole and double taxation during the spring session, leaving patients to struggle with about a 16% tax on all purchased cannabis medicines. This confiscatory tax rate is helping keep the illegal "black market" cartels in business throughout Oklahoma. Many patients still patronize the black market dealers because the price is competitive.
Total reported sales are now over 30 million per month and garnering about $5 million in taxes. Liquor taxes currently bring in about $10 million per month, and tobacco taxes are dropping well below $10 million per month. Not that tobacco consumption is flat, but many Indian tribes are selling cigarettes without the hefty state tobacco taxes.