Two New States Live
Announcing Tax API support for Florida and Massachusetts
We're very happy to announce the release of both Florida and Massachusetts, available now via our Tax API.
While it was disappointing to see Florida's attempt at legalization of an adult-use market fizzle before the 2020 election it remains one of the largest medical-only markets in the world. And, yes, we know medical marijuana isn't taxed in Florida. But that doesn't mean developers should have to know that.
We believe that API integrations should be set-it-and-forget-it. The less you think about it after your integration is complete the better.
So why would we want to make you, the developer, keep track of which states do what? That would defeat the entire purpose. Just go ahead and integrate once and let us do the rest.
Like Florida, Massachusetts doesn't tax medical cannabis. It's exempt from both excise and sales taxes. But, adult-use cannabis is subject to a 10.75% excise tax and a 6.25% state sales tax. Luckily, consumers get a small break by way of avoiding any compounding of the two taxes where states like California will apply one tax on top of the other.
There's also a local option tax authorized of 3%, and as of now, every municipality that's embraced cannabis businesses has opted in.
A unique feature of the regime in Massachusetts is the adoption of Host Community Agreements (HCA). These have been controversial as some municipalities have been accused of using the Community Impact Fees (CIF) imposed by such agreements as excessive, essentially a mechanism to get around the legislated maximum local tax.
This isn't a tax though, so we're currently not including these as part of the rating on a transaction. That said, we're keeping a watchful eye and we'll be quick to integrate the CIFs into the API should circumstances warrant it. You won't have to do a thing to get that added functionality, it'll just work.
Delivery isn't complicating taxes in Massachusetts just yet, but adult-use delivery is on the horizon. Many communities have prohibited cannabis businesses from operating within their borders. It remains to be seen if the local option taxes will play a part in delivery across those borders should it be allowed as it is in California.
Take both states for a spin using our handy cannabis tax rate lookup tool. Or, sign up for an API key and get to integrating live and continuously updated cannabis tax rates and calculations for California, Oregon, Washington, and now Florida and Massachusetts.
Waiting on your state? Drop us a line and let us know which one!
Keeping up with the rapid changes in the cannabis tax landscape requires constant attention. Pact offers a variety of products with one aim: to let you focus on your business, not taxes. If your Point of Sale system has you configuring and managing your tax rates yourself using complicated tables and compound tax ordering rules, insist they level up and power their tax lookups by Pact.