How are taxes on cannabis products determined?

In Texas, taxes on cannabis products are determined through the collection of state and local taxes. State taxes are typically collected by the Texas Comptroller of Public Accounts, while local taxes are collected by the county or city. State taxes on cannabis products are based on the sales price. The state sales tax rate in Texas is 6.25 percent. The state of Texas also charges a separate cannabis excise tax in the amount of 4.75 percent. This means that the total state tax rate for cannabis products is 11 percent in Texas. Local taxes on cannabis products in Texas are set by the county or city that the product is sold in. These taxes can range from zero to two percent. As the local tax rate is set by the local government, it can vary significantly from county to county. Thus, the total tax rate on cannabis products in Texas can range from 11 to 13 percent, depending on the local tax rate set by the county or city. The taxes collected from cannabis sales go towards local public services, such as education and public safety. Additionally, revenues from cannabis taxes can be used to fund drug prevention and treatment programs.

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How are taxes on cannabis products determined?

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