OPEB liability
Post date: Nov 29, 2017 7:52:30 PM
I pass this along not necessarily as a recommendation, but as the type of information I am receiving in my inbox.
Legal retail sale of marijuana in Massachusetts is fast approaching and presents a unique opportunity to help with your OPEB costs. In addition to the sales and state excise taxes, cities and towns will be able to impose a tax of up to 3% of gross sales of marijuana.
If your town has been struggling to meet OPEB funding obligations this 3% tax could be a consistent, low effort way to fund. The sale of legal marijuana in Massachusetts is expected to generate approximately $90 million in taxes in 2018.
Now your town would only see a small chunk of that, but it is a sizeable amount of new tax revenue. While you likely have other needs for this revenue, like schools or infrastructure, consider dedicating a small amount to your OPEB fund. Even 0.5% would make a difference and reduce the future strain on your taxpayers.
OPEB funding is a major concern in many towns across the state and it can be a hard sell to taxpayers. They’d much rather see their tax money go to current costs & that’s understandable. If your town decides to allow retail marijuana – embrace it and fund your OPEB obligations.
As always, if you have any questions on funding your town’s OPEB obligations, we’re here to help.
Parker E. Elmore, ASA, MAAA, FCA, EA
President, Actuary & CEO
Odyssey Advisors