How are taxes on cannabis products determined?

In Utah, taxes on cannabis products are determined by the Utah State Tax Commission. The Tax Commission, along with the Department of Alcoholic Beverage Control, regulates the sale of cannabis in the state. According to the Tax Commission, the sales tax rate for cannabis products sold in Utah is 4.85%. Additionally, the state imposes a special marijuana tax at the rate of 10%. This tax is imposed on the purchase of marijuana flower, marijuana extract, marijuana edibles, and marijuana topicals. In addition, Utah has a Local Option Sales Tax which applies to cannabis products. This tax is determined by the local governing body and can range from 0.25% to 2%. When a customer purchases cannabis products in Utah, they are required to pay both the sales tax and the special cannabis tax. This total combined tax rate is applied to the sales price of the cannabis product. For example, if the price of a cannabis product is $20, the customer would be required to pay $2.29 in taxes for a total of $22.29. This is the total amount the customer would be required to pay for the cannabis product. The revenue generated from the taxes on cannabis products is used to fund services like education, health, and public safety. It also helps offset the costs associated with enforcing marijuana laws and regulations. Additionally, the revenue helps pay for programs that support individuals who use cannabis for medical purposes.

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How are taxes on cannabis products determined?

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