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Wilmington City Council unanimously passed a resolution urging the Delaware General Assembly to authorize a local excise tax of up to 3% on recreational marijuana sales.(Photo by Elsa Olofsson)
WILMINGTON — Building on its recent vote to regulate where marijuana businesses can operate in the city, Wilmington City Council unanimously passed a resolution urging the Delaware General Assembly to authorize a local excise tax of up to 3% on recreational marijuana sales.
The move follows Council’s earlier passage of Ordinance 25-013, which amended Chapter 48 of the City Code to permit and regulate marijuana cultivation, manufacturing, testing, and retail sales in designated zoning districts. That ordinance created a local framework aligned with state cannabis policy.
READ: Wilmington City Council passes ordinance regulating recreational marijuana establishments
“With the passage of Ordinance 25-013, Wilmington is setting a standard for responsible implementation of state marijuana policy,” said Councilmember Chris Johnson, who represents the 7th District and sponsored both measures.
“Wilmington strikes a balance between fostering new economic development and protecting our communities.”
The newly passed Resolution 25-027 goes a step further by requesting legislative authorization for the city to impose a local tax, with revenue directed toward communities disproportionately harmed by decades of marijuana enforcement.
“This is a historic moment,” Johnson said during the meeting. “We realized Wilmington did not get a direct piece of the pot.”
Under Delaware’s 2023 legalization laws, marijuana retail sales are subject to a 15% state tax. Wilmington is seeking the ability to add a local 3% excise tax on top of that, similar to what New Castle County has proposed.
READ: NCC Finance Committee proposes local tax on recreational marijuana
Councilmember Johnson noted that the proposed 3% excise tax was developed in consultation with members of the cannabis industry, who expressed support for a moderate rate. “It’s 3%, which is something I just came to by talking to people in the industry,” Johnson said. “Just as a new industry, they wouldn’t want something too high or too low.”
The resolution proposes an amendment to Title 22 of the Delaware Code, which currently limits municipalities from imposing new taxes unless explicitly authorized. The proposed change would allow cities with populations over 50,000 to enact a marijuana excise tax via local ordinance. Medical marijuana would be excluded.
Councilmember Alexander Hackett emphasized the importance of directing any future cannabis tax revenue toward programs with tangible community impact.
“I hope when it comes to the city, we’re evaluating these funds, especially when we’re talking about our youth and our community centers, and figuring out where it can be a direct support to our community and help them,” Hackett said.
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Claudia is a Philadelphia-based journalist and reporter passionate about storytelling that informs and engages the community. Claudia, a proud Temple University graduate, has built a career covering impactful stories and creating compelling content across digital and print media platforms. With a strong background in writing, editing, and research, Claudia has worked on various topics, from local news to in-depth features, always striving to deliver meaningful and accurate reporting.
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“}]] WILMINGTON — Building on its recent vote to regulate where marijuana businesses can operate in the city, Wilmington City Council unanimously passed a resolution urging the Delaware General Assembly to authorize a local excise tax of up to 3% on recreational marijuana sales. Read More
