Don’t Tread on Me! Tobacco and (Cannabis?) Excise Taxation

On April 1, the House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement Act (H.R. 3617) (the More Act). The More Act, now in the Senate Finance committee, if enacted as written, would levy an excise tax on cannabis products produced in or imported into the United States (under new IRC Sections 5901 through 5905) and would also levy an “occupational tax” on cannabis production facilities and export warehouses (under new IRC Sections 5911 through 5914). There would also be civil penalties for failing to pay under new IRC Section 5941 and criminal penalties for fraudulent offenses under new IRC Section 5942. Welcome to the neighborhood, cannabis!  The taxes would be much like those imposed on tobacco.

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