IT’S 4/20: DO YOU KNOW WHERE YOUR CASH BAG IS?
On this April 20, Must Read Alaska checked in with the Department of Revenue to see how tax collections are coming on the cannabis industry. The most recent report available for 2019 goes through the end of February.
The State has reported collecting $12,308,997 in taxes so far this fiscal year, which ends June 30.
That’s running about 10 percent more than in 2018 during the same period.
Between January and February, 196,635 ounces of buds and flowers were sold in Alaska, taxed at $50 an ounce. Over 10,000 ounces of immature, seedy, or failed plants were sold, taxed at $25 an ounce, and the rest was in the “trim or rest of plant category — 153,246 ounces were sold and taxed at $15 an ounce.
The total tax collected on cannabis for January and February was more than $1.5 million. That money is arriving at the state in the form of cash in money bags, dropped through a slot.
Because banking laws have not aligned with state marijuana laws, the Tax Division accepts cash payments in Anchorage located at the same place where people go to apply in person for their Permanent Fund dividends.
Cash for taxes require specific instructions for marijuana dealers. Here are the Tax Division’s instructions:
- All cash payments must be in a division-approved deposit bag. If making a payment in person, the cash must be enclosed in the bag before entering our lobby. The bag must be no larger than 11” x 13” and must be a tamper-resistant, bank deposit type bag. Do not overstuff the bag – it must fit in the drop box slot. Use more than one bag if your payment does not fit in one. Please contact the Tax Division if you have any questions or need a sample.
- Print a payment voucher from Revenue Online. Please verify that your voucher type and filing period are correct. Failure to do so could result in delays in processing your payment. If you are unsure which voucher type to use, please contact the Tax Division.
- Write your name and tax account ID (from the voucher) on each deposit bag.
- Include a copy of the voucher in each deposit bag.
- Cash should be sorted by denomination and all bills should face the same direction. The Tax Division will not accept any mutilated or contaminated currency.
- Bring your payment to the drop box located next to the Child Support and Permanent Fund Dividend offices in the Linny Pacillo Parking Garage, 655 F St, Anchorage, AK 99501. The lobby is open Monday through Friday from 10:00 am to 4:00 pm. You must have a key to access the drop box. You can get a key from the Tax Division’s Anchorage office (Fifth Floor of Atwood Building) or have one mailed to you.
- If you are depositing more than 10 bags in a single month, please contact the Tax Division at 907.269.6620 for other instructions.