Minnesota increased marijuana tax; critics fear illicit market

Minnesota has increased its retail marijuana tax from 10% to 15%, making it one of the highest in the nation. The change, approved Tuesday, is expected to generate over $200 million in revenue. The tax hike comes as the state prepares to launch its legal cannabis market and just after awarding business licenses. Critics fear the higher tax will drive consumers to the illicit market, undermining legal businesses. The bill also removes the requirement to share cannabis tax revenue with local governments. This change, along with the tax increase, is part of a budget deal aimed at addressing a potential deficit.