South Dakota State lawmakers pass recreational marijuana tax bill – Cannabis Business Executive

One way or another, it appears that recreational marijuana is going to be back on the ballot this November.

With that in mind, South Dakota state lawmakers in Pierre are inclined to lay down the framework for the industry before it actually becomes legal.

HB 1045, sponsored by State Rep. Ernie Otten (R-Tea), is a bill that would “increase a tax on the gross receipts of all sales of marijuana,” and sets the framework for how adult-use marijuana would be taxed in South Dakota, should it become legal.

“The thing about this bill is it doesn’t legalize marijuana, but it works in tandem with what the voters will put on the ballot or whatever is coming this Fall,” said State Rep. Drew Dennert (R-Aberdeen). HB 1045 passed through the House Taxation committee, which Dennert chairs. “If that legalizes marijuana, it still wouldn’t set up a taxing system, so this bill is extensive. But it set that taxing system up.”

The framework makes it so that marijuana would be taxed at 15%, which was what Amendment A proposed as well.

Counties and states would effectively split that money, and counties would be able to put it back into infrastructure. [Read more at KEVN]