Alaska Gov. Dunleavy establishes task force to review marijuana taxes, fees, and regulations

Alaska Gov. Mike Dunleavy issued an administrative order to establish the Governor’s Advisory Task Force on Recreational Marijuana.

© Shutterstock

The task force will be charged with reviewing the current marijuana tax and fee structures and regulations applicable to marijuana operators and recommending the necessary improvements.

In 2014, Alaskans approved an initiative to tax and regulate the production, sale, and use of marijuana. However, it imposed a $50 per ounce excise tax on the sale of marijuana from warehouses to retailers. The governor believes now is an appropriate time to evaluate its provisions as the industry grows in the state.

“In the past seven years, Alaska’s marijuana industry has flourished but is still considered a new and evolving industry in Alaska,” Dunleavy said. “As we would expect to see with any new industry, concerns have been raised about the structure the industry has been operating under. A cornerstone of my administration has been to review unnecessary regulations that are a burden to business while ensuring oversight to protect the health, life, and safety of all Alaskans. It is my hope that with the formation of the Governor’s Advisory Task Force on Recreational Marijuana, we can bring together a variety of voices and perspectives to evaluate existing provisions and consider recommendations to improve the viability of the industry.”

The task force will consist of 13 voting members, including three state officials – the commissioner of the Department of Revenue or designee; the commissioner of the Department of Commerce, Community, and Economic Development or designee; and the director of the Department of Natural Resources, Division of Agriculture.

The other 10 members will consist of one member who sits on the Alaska Marijuana Control Board; one who represents a city, borough, or municipality that allows recreational marijuana businesses within its jurisdictional boundaries; one that is a standard licensed marijuana cultivator in the state; one that is a limited licensed marijuana cultivator in the state; one that is a licensed marijuana product or concentrate manufacturer in the state; one that is a licensed marijuana retailer in the state; three licensed marijuana operators from any segment of the industry; and one member of the public.

Once appointed, the task force will meet monthly and submit a report of findings and recommendations by Jan. 13, 2023. Those interested in serving on the task force may apply at gov.alaska.gov/apply.