Alaska Marijuana Businesses Make First Tax Payments to State

Alaska marijuana industry businesses have made their first tax payments to the state – in cash. Greatland Ganja co-owner Leif Abel went to the Permanent Fund Dividend Office to make his business’ first tax payments on cultivation sales. His fee was $5,600.

The first tax payment received by the state was made on Monday, according to KTUU 2 News. The Permanent Fund Dividend Office offers a drop box for business owners to put cash payments in. The drop box is a specially constructed machine specifically for marijuana industry tax payments.

Abel said, “We’re proud to be able to come in and pay our first marijuana tax. It’s something that we’ve been working toward for between two and three years now, so it’s nice to finally reach this day. It’s kind of as big of a day as our first sale was to us.”

Anchorage has the only special drop box for cash payments. Other locations offer different options to pay marijuana sales taxes. Money orders can be used to make tax payments. Tax returns and payments can be sent via postal mail. Marijuana business owners are also permitted to pay electronically through Revenue Now.

The lack of banking institutions for the marijuana industry remains to be a challenge. Even credit unions won’t allow marijuana business owners to open accounts. Rather than sending cash, Leif Abel prefers to make his payments in-person since he has to pay in cash. He said, “My retailers pay me mostly in cash and right now the banks won’t give Greatland Ganja a bank account, and the credit unions won’t give Greatland Ganja a bank account. And so unless I want to do some sort of financial acrobatics, I have cash and that’s what I have to give the state.”

Abel did comment that Alaska’s system for paying taxes is suitable, efficient and easy to follow.