Delaware marijuana distributor voices concerns over 15% tax for Elkton competition

During a recent meeting of the New Castle County Administrative-Finance Committee, discussions centered around the challenges facing Delaware's medical marijuana market, particularly in comparison to neighboring states. A council member shared insights from a conversation with a medical marijuana distributor, highlighting that Delaware's 15% tax rate on medical marijuana is proving to be a significant hurdle for local businesses.

The distributor noted that while an eighth of marijuana costs around $50 in Delaware, the same product can be purchased for approximately $32 in Elkton, Maryland. This price disparity, exacerbated by Maryland's lower tax rate of 9%, raises concerns about the viability of Delaware's market. The distributor is currently offering discounts on specialty products to remain competitive, but the long-term sustainability of sales in Delaware remains uncertain.

Council members expressed concern over the potential for increased illegal sales as residents seek more affordable options across state lines. The conversation underscored the need for further examination of Delaware's tax policies and their impact on local businesses and consumers.

As the committee prepares for future discussions and potential votes on this issue, the implications for public health, safety, and local economies are becoming increasingly clear. The meeting highlighted the importance of addressing these challenges to ensure that Delaware's medical marijuana industry can thrive while meeting the needs of its residents.