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Medical Cannabis Privilege Tax

Tax Types >
  • Medical Cannabis Privilege Tax

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Section 20-2A-80(b), Code of Alabama 1975.

The tax is calculated on net worth plus additions, minus exclusions, times the apportionment factor, which equals Alabama taxable net worth.

The rate is based on the ability to pay and is determined by the entity’s federal taxable income apportioned to Alabama. The rate rages from $0.25 to $1.75 for each $1,000 of net worth in Alabama.

 

If taxable income of the taxpayer is:

Less than $1, the tax rate shall be $0.25 per $1,000.

At least $1 but less than $200,000, the tax rate shall be $1 per $1,000.

At least $200,000 but less than $500,000, the tax rate shall be $1.25 per $1,000.

At least $500,000, but less than $2.5 million, the tax rate shall be $1.50 per $1,000.

At least $2.5 million, the tax rate shall be $1.75 per $1,000.

 

Minimum medical cannabis privilege tax is $100;

Maximum medical cannabis privilege tax is $15,000;

The maximum medical cannabis privilege tax for an electing Family Limited Liability Entity is $500.

Medical Cannabis Commission Fund, Section 20-2A-10, Code of Alabama 1975.