More regulations could be coming for the hemp-THC industry in Louisiana. State leaders say that this could raise $9 million in revenue in a region that faces budgetary challenges. Joe Gerrity, CEO of Crescent Canna, joined WWL’s Tommy Tucker to discuss how changes every year impact investment in the industry and the state and said the entire taxation process is a complex one.
“Right now, the state imposes an excise tax of 3 percent and the retailer pays that. The way it works with alcohol and other industries is that the tax is paid by the wholesaler, which make the burden on the retailer much easier and taxation much simpler,” Gerrity explains. He was quick to note that the differences in how alcohol is treated from a financial standpoint in Louisiana is vastly different.
“Taxation for beer, for example, is about 3.75 cents per 12 oz. can. That isn’t an enormous burden on the consumer. A 15-20% tax on our THC products would be substantially higher than that (roughly 5-6 times the amount) … so, we’re looking to fight this issue in the legislature,” Gerrity goes on to illustrate.
He also notes that in a state dominated by Republican lawmakers, he finds it odd that Republicans are pushing bills looking to increase taxes on his product to consumers.