How are taxes on cannabis products determined?

In Kansas, taxes on cannabis products are determined on a tiered system. These tiers are based on the THC content of the product. Tier 1 products are those with 0-14% THC content and incur an excise tax rate of 7%. Tier 2 products are those with greater than 14% THC content but less than 25% and incur an excise tax rate of 10%. Finally, Tier 3 products are those with greater than 25% THC content and incur an excise tax rate of 13%. In addition to the excise tax, there is also a state sales tax that is applied to all purchases. This sales tax rate in Kansas is currently 6.5%. However, cities and counties are allowed to impose an additional sales tax of up to 3%. It is important to note that in addition to the taxes that are imposed on cannabis products, there are also regulations and restrictions that must be followed in order to legally sell, purchase, or possess cannabis in Kansas. For example, cannabis products can only be sold from licensed dispensaries and it is illegal to transport cannabis across state lines. Additionally, possession of cannabis is illegal for individuals under the age of 21.

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How are taxes on cannabis products determined?

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