As Delaware prepares to launch its recreational cannabis market, some local governments are already pushing for the right to impose additional taxes on marijuana sales. The move is raising concerns among industry experts, advocates, and consumers who fear it could drive up prices and undermine the goals of legalization before the first dispensary even opens.
Delaware legalized adult-use cannabis in 2023, becoming the 22nd state to do so. Under current state law, recreational marijuana sales will be subject to a 15% state excise tax. That revenue is intended to support regulation, education, and social equity programs. However, the law does not allow cities or counties to add their own local cannabis taxes—unlike states such as California, Colorado, and Oregon where municipalities can levy additional charges.
Now, several local officials in Delaware say they want that to change. They argue that hosting cannabis businesses will create new costs for towns and counties—such as zoning enforcement, public education, and increased administrative oversight. They believe local governments should be able to recoup those expenses through their own taxes on cannabis products.
But cannabis advocates warn that extra taxes could do more harm than good. Higher prices at the register could push consumers back into the illicit market, where products are unregulated and untaxed. This is a pattern seen in other states: in California, some cities have rolled back or eliminated local cannabis taxes entirely because they made legal products too expensive to compete with street sales.
There’s also concern that additional taxes will disproportionately impact low-income consumers and medical users. Even though recreational cannabis is now legal, many patients still rely on cannabis for chronic pain, PTSD, anxiety, or other conditions. If prices rise too high, access could be limited—especially for those who don’t qualify for financial assistance.
Industry groups are also watching closely. Business owners who are planning to enter Delaware’s cannabis market say they need clear, stable rules in order to make long-term investments. Constantly changing tax policies could create uncertainty that discourages new operators, especially smaller and equity-focused businesses that already face high startup costs.
The Delaware General Assembly has not yet signaled whether it will take up legislation to allow local cannabis taxes. Some lawmakers have expressed interest, but others worry that layering on additional taxes so early in the rollout could backfire.
Delaware’s legal cannabis sales are expected to begin in 2025, giving state and local leaders time to refine the system. Advocates hope the state will prioritize affordability, equity, and consumer protection—not just revenue.
As the cannabis industry continues to grow, balancing local needs with statewide goals will be key to building a system that works for everyone—from cities and businesses to patients and everyday consumers.
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