Alaska’s full House of Representatives has advanced a measure that would alter the state’s tax rate for licensed recreational marijuana sales.
On Friday, the Alaska House of Representatives voted to change the state’s $50 per ounce marijuana tax to a 7% sales tax via the passage of House Bill 119. The measure —approved overwhelmingly 36 to 3— will now be sent to the state’s Senate. If approved in the Senate, it will be sent to Governor Mike Dunleavy.
HB 119 would establish a 7% statewide tax on licensed marijuana sales, making it Alaska’s first statewide sales tax. Under current law, marijuana is taxed at $50 per ounce.
The change to a flat sales tax was initially put forth by the recreational marijuana task force, convened by the governor in 2022. However, the task force recommended a 3% tax. State Representative Jesse Sumner, the primary sponsor of HB 119, initially raised this to 10%, which was later amended to 6% and then settling at 7% before being passed through the House.
Alaska legalized marijuana in 2014, two years after Colorado and Washington became the first states to do so. The law allows those 21 and older to possess up to four ounces of marijuana. They can purchase up to one ounce per transaction at a licensed marijuana store. The first such store opened in 2016.
