The legalization bill sets taxes at a low rate at the beginning so the recreational program can compete with the underground market. The original bill called for an excise tax to start at 12 percent, rising to 15 percent in year two, 20 percent in year three, and topping out at 25 percent in year four. Sweeney has said he prefers a maximum of a 12 percent tax. No state taxes would be levied on medical cannabis.