MOORHEAD, Minn. (Valley News Live) – As a significant tax increase on cannabis sales in Minnesota makes it’s way into the market, local dispensaries are speaking out and bracing for impact.

Since the beginning of the legalization of recreational marijuana use, it hasn’t been smooth sailing for Minnesota entrepreneurs to get up and running. Those who are in business now face a new obstacle.

“I was definitely disappointed as well as everybody else was. Nobody likes paying more money for anything,” said Jacob Grecco, Assistant General Manager of Waabigwan Mashkiki.

Spending more money at local dispensaries, like Moorhead’s newest White Earth owned shop, can be expected after an approved legislative deal increased cannabis sales from 10% to 15%. That’s in addition to the existing state sales tax of 6.875%.

Grecco explained, “It’s going to be an extra 5% on products. If someone is buying a $50 dollar eighth, they’re going to be spending about $2.50 cents more.”

The change comes after a projected budget deficit in the coming years. The tax hike is part of a larger budget agreement aimed to address Minnesota’s financial challenges.

The tax increase now brands Minnesota with one of the highest cannabis sales tax rates in the country. Tax rates vary from state to state, with rates as low as 6% in Missouri, and as high as 37% in Washington.

Grecco assured the demand for cannabis is high, and hopes the increase doesn’t affect revenue too much.

He said, “It’s really all up to the people and the decisions they want to make. If they’re comfortable with paying a little more, just keep supporting us. We’ve been seeing so many people and so many different community members, it’s been awesome seeing all of these smiling faces walking through the door and serving everyone.”

Serving everyone, he said those at Waabigwan Mashkiki are ready to face the tax increase head-on.

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