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What Should You Expect to Pay in Taxes on Your Cannabis Purchase at a Dispensary?

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If it’s your first or nth time visiting a dispensary, you will pay tax on every cannabis product or delivery item you bought. On each cannabis product you paid for, you pay at least 20% in taxes. This could go as high as 40%, depending on the product and state you live in.

The first time I purchased cannabis in a dispensary, I was shocked at the total price rung at the point of sale. Further investigation showed that customers pay a percentage of excise tax, local business tax, and state sales tax. Every canna-legal state generates multiple types of revenues on cannabis transactions. Most dispensaries have POS software that makes it easy for customers to understand their cumulative and post-tax fees on each transaction.

Cannabis Taxes in the Legal States

Taxes are often added as a single percent to subtotal in traditional retail. For instance, the final price would be $33+ $2.98 = $35.98 if the item costs $35 and the sales tax is 8.5%. It goes without saying that cannabis has more complicated and expensive taxation. You can anticipate being charged one or more forms of taxes at your favorite dispensary, depending on local rules.

There are three common types of cannabis taxes.

Sales Tax

The customary tax we are all accustomed to paying while making purchases is the sales tax. State-by-state and city-by-city variations in the tax rate typically range from 4 to 17%. For instance, the rate in Oregon is 17%, whereas Montana’s medicinal marijuana sales tax is 4%. With a current medical marijuana identification card, medical patients in places like California and Maryland can avoid this charge (MMID).

Sales tax is included in the state’s general fund and is frequently utilized for municipal transportation, health programs, public safety, and education.

Excise Tax

The excise tax is a type of business tax that is expressly applied to cannabis goods that are sold to consumers. In California, if a retailer buys things in bulk, the item’s price frequently includes the state excise tax of 15%. The excise tax may be applied to the client’s receipt or incorporated in the item’s fee if a store is vertically integrated from its cultivation and/or distribution.

Similar to other states, Nevada levies a 15% tax on cannabis purchases and a 10% excise tax on retail sales. Additionally, Colorado imposes a 15% excise tax on the average market rate (AMR) or contract price of cannabis for sale. Each retail marijuana facility is required to file one marijuana excise tax return.

The state-collected excise tax, which must be included in all legal cannabis sales and is utilized for projects like cannabis research, substance addiction programs, mental health care, and environmental protection, is a quarterly revenue source for the state.

Local Business Tax

Local governments decide on local taxes, municipal taxes, or post-tax fees. They have the option of applying or not applying this tax. The municipal business tax may not apply to medical patients, or they may pay a lower rate than adult-use consumers.

Given all these possible factors, overall taxation can differ significantly even within the same state. In California, for instance, Oakland, San Diego, San Francisco, and Los Angeles all have varying tax rates.

Cumulative Tax Calculation

Retailers must collect various taxes, and the order in which they are computed matters to avoid charging the incorrect amount.

The majority of states, including Massachusetts, Colorado, and Oregon, compare all taxes to the subtotal. Others, like California and Michigan, base each tax on the gross receipt plus any other levies that have already been paid. These layered calculations are referred to as “cumulative taxes.”

Each state has an approved percentage for each type of tax. For example, if your state’s excise tax is pegged at 15%, sales tax at 7.8%, and local business tax at 5%. All these are added to your product’s subtotal.

Let’s assume your subtotal is $30.

The cumulative tax will equal $38.34.

That is 30 + (30×7.8%) + (30×5%) + (30×15%)

Note that this is just an example. The actual amount would vary depending on your state’s tax laws.

If you own a dispensary, here are some practices to ensure your enterprise complies with cannabis tax laws.

Understand your local tax laws

Calculating taxes on cannabis sales can be challenging. Be sure to check your state and local legislation before automating tax computations at your dispensary. Consult your accountant or seek legal counsel to verify compliance and accuracy since you don’t want to find yourself in a situation where you’ve been collecting taxes incorrectly.

Keep your records updated

Retailers of cannabis are required by law to maintain financial records proving the accuracy of sales. You can keep track of inventory, record activity for each sale transaction, and keep a record of each customer who comes into your dispensary by using a point-of-sale dispensary system designed exclusively for the cannabis industry.

In the event of an audit, you will be able to prove precisely where your profits come from and where your items are from seed to sale if you have a paper trail of compliance created by documenting everything.

Keep your operations transparent

By properly writing tax information on your receipts, you may help your customers understand exactly what taxes are being charged. By doing this, pricing complaints will be reduced, and it will be clear how their overall cost was determined.

To be able to effectively respond to consumer inquiries and impart knowledge about how cannabis tax revenue is used to enhance local communities, educate your team on each sort of tax.

Last words

If you’re a customer, it is also advisable for you to be well versed in your state’s tax legislation. This way, you know if you’re being charged rightly or not.

Customers and business owners must be willing to take a stand against excessive cannabis taxation. Many states have little or no tax incentives for cannabis purchases, whereas other industries enjoy these incentives. If excessive cannabis taxation isn’t curbed, many consumers will continue patronizing black market operators. Additionally, if the tax rates continue rising, many small cannabis business owners will be pushed out of business.

Source: https://cannabis.net/blog/news/what-should-you-expect-to-pay-in-taxes-on-your-cannabis-purchase-at-a-dispensary

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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