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Alaska marijuana industry hopes tax relief will reduce black market availability

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Alaska marijuana industry hopes tax relief will reduce black market availability


ANCHORAGE, Alaska (KTUU) – The tax rate is too high — that is what the Alaska marijuana industry is saying about the state’s current tax rate on marijuana.

The marijuana industry is asking state lawmakers for help. People in the industry are concerned that if the current tax formula isn’t solved, it could potentially lead the industry into a downward spiral.

Vice president Trevor Haynes of the Alaska Marijuana Industry Association said tax on marijuana in the state of Alaska is outrageous.

“Alaska has, by some estimates, the highest tax rate for marijuana of any legal state right now,” Haynes said. Cultivators here can be taxed as high as $50 per ounce when selling marijuana to a retailer. Haynes said a pound of marijuana can sell for between $1,500 to $3,200 a pound.

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“The equivalent tax rate we have for bud is $800 per pound,” Haynes said.

During a recent House Labor & Commerce Committee meeting, legislative aide Cody Rice said House Bill 119 proposes changing the state’s marijuana tax to $12.50 per ounce tax across all categories, and then to phase in a retail sales tax 18 months after passage of the bill.

Haynes said it’s very unusual to have an excise tax like this on an agricultural crop — the cost of which is then passed on to customers at retail shops. Haynes said the higher prices are leading customers to the black market, which is concerning to him.

“You’re getting an untested product, and in the world that we live in where there’s fentanyl being put in everything that is on the black market, it’s very dangerous” Haynes said.

Those same concerns were shared by Brandon Emmett, a representative of Gov. Mike Dunleavy’s Marijuana Tax Task Force, at the House Labor & Commerce Committee.

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“Anecdotal evidence suggests that 40% to 50% of the marijuana being sold in Alaska’s market is black market,” Emmett said.

At that same meeting, concern was raised that the current status quo is also causing the state’s marijuana tax revenue to drop — revenue which helps fund multiple programs including drug treatment and education programs along with ways to reduce the number of people returning to prison. In 2021 tax revenue from the industry was more than $30 million, but it has since fallen off.

“So, I have a high degree of confidence and telling you that tax revenue from marijuana this year will be less than last year,” Rice said. “If nothing is done, my estimates suggest revenue be around $9 million a year or less, in three years.”

Haynes said HB 119 is proposing a 10 percent retail sales tax, but Emmett said the marijuana task force believes the tax needs to be lower — maybe as low as 3%.

Committee chair Rep. Jesse Sumner said the proposed bill will be further discussed at a meeting in October or November by the Marijuana Tax Task Force.

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Alaska

Sky Watch Alaska: planets align plus the aurora forecast

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Sky Watch Alaska: planets align plus the aurora forecast


ANCHORAGE, Alaska (KTUU) – This is a great time of year to do some star gazing. If you have clear skies in your part of Alaska, take the time to check out the night — and morning — sky.

After sunset, look toward the southwest. Saturn and Venus are snuggled up together (of course, they are more than 800 million miles apart) in the evening sky. They set at about 9:40 p.m. in Southcentral.

Before 9:40 p.m., you can see four planets with the naked eye — Saturn, Venus, Jupiter and Mars. Jupiter and Mars stick around through the morning. Mars is very close to the moon right now.

The Aurora forecast is fairly weak for the next few weeks. That’s not to say there won’t be the occasional burst but overall, solar activity is expected to be fairly low until the beginning of February.

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If you get great pictures of the planets, the sky, or the aurora, don’t forget to send them to Alaska’s News Source.

See a spelling or grammar error? Report it to web@ktuu.com



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Short-lived cold snap, with another warming trend this weekend

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Short-lived cold snap, with another warming trend this weekend


ANCHORAGE, Alaska (KTUU) – Temperatures across the state are cooling off, as our strong low from the weekend moves into the Chukchi Sea. This will set up for colder air to spread across the state this week, as another short-lived cold snap is expected. While some light snow is possible for the Interior, areas of the Slope and Western Alaska, Southcentral will stay on the drier side until the night. Meanwhile, Southeast will continue to hold onto moderate rain with gusty conditions.

SOUTHCENTRAL:

Temperatures this morning are 10 to 20 degrees colder than yesterday, as colder air has settled back into Southcentral. Clear skies and calm winds are evident this morning for parts of the region, with light snow falling through the Copper River Basin. We’ll see fairly quiet conditions today, outside of Kodiak which will see increasing snow and rain into the afternoon and evening hours. This comes as our next area of low pressure moves up the Alaska Peninsula.

We’ll see light snow spreading north across the Kenai overnight into Wednesday, with light snow expected through Prince William Sound. Several inches are likely through the Kenai and Chugach Mountains, with the pass expected to see a couple of inches of accumulation. Western parts of the Kenai will see the potential for a few inches, while inland areas of Southcentral largely stay dry. If Anchorage and surrounding locations see any accumulation, it’ll amount to less than half an inch.

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As snow tapers off Wednesday, we’ll see the return to colder and drier conditions into Thursday. Thursday may be the coldest day this week across the region, before another warming trend carries us into next week. Right now holding with snow through early next week, but areas of wintry mix are possible as highs warm above freezing.

SOUTHEAST:

The winter storm warning for Skagway and higher elevations expired at 6am this morning. While some light snow showers are still possible, little accumulation will occur the rest of the day. Scattered to periodic showers are occurring elsewhere across Southeast today, with less than half an inch of rainfall through the day. Any moisture available into the evening will see a transition to some wintry mix or snow into Wednesday morning. However, the better chance will come from another low lifting north into the panhandle. Any snow and wintry mix we see for Wednesday will primarily stay confined to the central and southern panhandle. We’ll see much cooler weather taking hold this week for Southeast.

INTERIOR:

Some areas of light snow are possible this morning, with less than half an inch to be expected. While temperatures are still warm for much of the Interior, highs will steadily fall throughout the day. Many areas will see lows bottom out near or below zero by tomorrow morning. We’ll see high pressure keep things dry and sunny through the next couple of days, with the coldest stretch of weather from Wednesday morning into Thursday morning. Much like the rest of the state will experience, a warming trend arrives this weekend. We’ll see the return to highs in the 20s, with some snow in the forecast. Be prepared for some gusty conditions through the Alaska Range by the close of this week.

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SLOPE/WESTERN ALASKA:

Areas of light snow and blowing winds will continue to impact the Slope, with a winter weather advisory remaining in place for the Central Brooks Range and the Beaufort Sea Coast. Both locations will see up to 1 inch of snow and gusty winds up to 35 mph. While the winter weather advisory will expire for the Central Brooks Range this afternoon, the Beaufort Sea Coast will see the alert continue into Tuesday evening. Snow and blowing snow will be the primary impact today, with a return to colder weather through the rest of this week, this comes as high pressure settles into the area.

The storm responsible for the damaging winds for Southcentral over the weekend, has pushed north into the Chukchi Sea. We’ll still see some light snow accumulations for Western Alaska, with 1 to 3 inches expected. Some fo the heaviest snow will fall across the Seward Peninsula and the Western Brooks Range.

An area of low pressure in the Bering Sea will keep gusty winds and snow in the forecast for Gambell/St. Lawrence. Be prepared for heavy snow at times and areas of reduced visibility. Overall, colder weather will settle into Western Alaska, with the possibility of morning fog in the valleys over the next few mornings.

ALEUTIANS:

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Some light areas of snow will occur for the Pribilof Islands and into parts of the Alaska Peninsula today, as a weak low moves up the Peninsula. This will be the main focus for snow into Wednesday for Southcentral. This low will bring heavy precipitation and gusty winds for the Eastern Aleutians and the Alaska Peninsula. Looking ahead through the rest of the week, we can expect to see more a ridge beginning to build into the region. This ridge will slowly shift east, keeping several upper level disturbances traversing the Aleutians. Temperatures will remain fairly warm in the 30s and 40s.

OUTLOOK AHEAD:

Model consensus continues to agree on another warming trend heading our way into next week. This stretch of warmth will likely lead to many spots cementing themselves within the top warmest January’s on record. While we’ll spend the rest of this week on the colder side, highs steadily climb this weekend into next week. We’ll see highs in Southcentral climbing back above freezing, with areas of the Interior climbing back into the 20s.

Have a safe and wonderful Tuesday!

See a spelling or grammar error? Report it to web@ktuu.com

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Anchorage, Alaska hit by hurricane-force winds, structures damaged across city

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Anchorage, Alaska hit by hurricane-force winds, structures damaged across city


Associated Press

Hurricane-force winds cause widespread damage in Alaska’s largest city

Thousands of residents across Alaska’s largest city were still without power Monday, a day after a powerful storm brought hurricane-force winds that downed power lines, damaged trees, forced more than a dozen planes to divert, and caused a pedestrian bridge over a highway to partially collapse. A 132-mph (212-kph) wind gust was recorded at a mountain weather station south of Anchorage. A large low-pressure system in the Bering Sea brought the high winds, moisture and warmer than average temperatures — in the low 40s Fahrenheit (slightly over 4.4 degrees Celsius) — to Anchorage on Sunday, said National Weather Service meteorologist Tracen Knopp.



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