cannabis taxation models

Cannabis taxation models typically include excise taxes (per gram or percentage of price), sales taxes (added at purchase), and sometimes license or cultivation fees. These taxes aim to generate revenue, regulate consumption, and prevent illegal sales. Some models tax high-potency products more heavily, while others use a flat rate. The tax structure influences the market’s price, access, and size of the legal industry. Policymakers balance revenue needs with affordability and public health considerations when designing these tax systems.