Alaska Bills Would Overhaul Cannabis Industry Taxes

A proposal in the Alaska House of Representatives seeks to change the state’s cannabis tax system, phasing out the current $50-per-ounce tax on licensed cultivators in favor of a 6% sales tax paid by consumers, Anchorage Daily News reports.

State Rep. Ashley Carrick (D), the sponsor of HB 91, said the legislation would help struggling businesses compete with the illicit market. Industry advocates say the cultivation tax poses an existential threat to growers.

Meanwhile, another proposal introduced by state Sen. Matt Claman (D), SB 73, would reduce the current per-ounce cultivation tax from $50 to $12.

The legislation aims to address recommendations from a recreational cannabis task force appointed by Gov. Mike Dunleavy (R), which convened in 2022.

“I think every year that we don’t take action, the industry faces more and more challenges with growing and stabilizing the work that they do. I do think that every year there’s a little bit of added pressure and added momentum, and we also have reduced revenue.” — Carrick, via Anchorage Daily News

Cannabis tax revenue in Alaska has declined in recent years, from about $30 million in 2021 to about $25 million in 2025. There were 69 licensed cultivators with past-due taxes at the end of 2025, collectively owing more than $5.5 million to the state Department of Revenue, according to the report.