Committee approves local-option excise tax on medical marijuana dispensaries

Senator Rader presented Senate Bill 20 53 to permit cities and counties, by a vote of the people, to adopt an excise tax (capped at 10%) on medical marijuana dispensaries. The sponsor said the measure gives localities a tool to recover enforcement and public-safety costs that fall to municipalities and counties.

Opponents argued the tax could be punitive and shifted the burden to dispensaries and consumers rather than addressing cultivation or enforcement at the production level. Supporters countered that voters, not the legislature, would decide local adoption and that local control allows communities to fund local enforcement needs.

After debate, the committee recorded a roll call of 7 ayes and 3 nays and declared the bill passed. The sponsor said the measure is intended to ensure municipalities can be reimbursed for local enforcement and to encourage lawful operations.