Alaska collecting first tax deposits from pot businesses

  • Wednesday, November 30, 2016 11:09pm
  • News

ANCHORAGE (AP) — The state has begun receiving its first tax payments from marijuana businesses, one month after the start of legal pot sales in Alaska.

The Department of Revenue said the first cash deposit from a pot shop came Monday. Leif Abel, co-owner of Greatland Ganja in Kasilof, became the second owner to pay when he dropped off $5,600 in tax money on Tuesday, KTUU-TV reported.

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

The state has set up a deposit safe at the Permanent Fund Dividend office for business owners to drop off their tax payments. It’s Alaska’s only in-person drop site for cash.

The payment process helps owners avoid having to deal with banks that are leery about working with pot businesses because marijuana remains illegal at the federal level.

Business owners can also submit payments by mail, wire transfer or electronically, according to officials.

Abel said his Kasilof business mostly deals in cash because most banks and credit unions won’t allow his cultivation operation to open 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 to the state,” Abel said.

He praised the state’s tax system for being efficient and easy to follow.

More in News

Dr. Kim Thiele stands by a wall of newspaper clippings and images of family members and precursors in his office near Kenai on Monday. (Jake Dye/Peninsula Clarion)
‘A ministry for me’

Kalifornsky doctor wraps up career after 44 years

Sen. Jesse Bjorkman, R-Nikiski, listens to testimony during a Senate Community and Regional Affairs Committee hearing on Thursday in Juneau. (Ashlyn O’Hara/Peninsula Clarion)
Bjorkman game seizure bill received warmly in Senate committee

Of the roughly 150 animals the department takes each year, an average of between one and two are determined to be wrongfully seized

A collage of photos of Nikiski North Star Elementary students taking swimming lessons at the Nikiski Pool. (Photo collages provided by Nikiski North Star Elementary)
Community effort puts 200 Nikiski North Star students through swimming lessons

The lessons covered “everything,” from basic flotation to constructing rough-but-functional life jackets out of clothing

From left, Rep. Andi Story, D-Juneau, hugs Rep. Stanley Wright, R-Anchorage, after House passage of sweeping education legislation while Rep. Maxine Dibert, D-Fairbanks, watches on Thursday, Feb. 22, 2024, in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
House passes BSA increase, with other education provisions

The bill now goes back to the Senate, where lawmakers must approve the bill as-is before it can head to the governor’s desk

Rep. Justin Ruffridge speaks about
House considers, rejects multiple school funding amendments during Wednesday floor debate

Over several hours, lawmakers considered six different increases in the Base Student Allocation to public schools

U.S. Sen. Dan Sullivan addresses members of the Alaska Legislature in the House chambers on Wednesday, Feb. 21, 2024, in Juneau, Alaska. (Mark Sabbatini/Juneau Empire)
Dismissing critics, Sullivan touts LNG project

During his annual address to the Alaska Legislature on Wednesday, the U.S. senator said state leaders should be doing everything they can to make the project successful

From left, Sen. Jesse Bjorkman, R-Nikiski, east side setnetter Ken Coleman and Konrad Jackson present information about a bill establishing a voluntary buyback program for east side setnet fishery permits during a Senate Finance Committee meeting on Monday, Feb. 19, 2024, in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Senate committee hears setnet buyback bill

The East Side of Cook Inlet Set Net Fleet Reduction Act is sponsored by Nikiski Sen. Jesse Bjorkman

Rep. Justin Ruffridge, R-Soldotna, speaks in support of debating an omnibus education bill in the Alaska House Chambers on Monday, Feb. 19, 2024 in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Tie vote kills early House debate on education funding

Lawmakers went into an hourslong recess that ended with adjournment until Tuesday morning

Most Read