How Much Tax Money Has Colorado Made Off Of Weed
Marijuana Tax Acquirement: A State-by-Country Breakup
Marijuana tin bring in big bucks for state governments.
In 2014, Colorado and Washington became the first states to allow the sale of cannabis products. Less than a decade later, a majority of states now allow the distribution of medical and/or recreational marijuana, or have ballot initiatives in identify that would do and so.
The map below from the Federation of Tax Administrators shows the status of marijuana laws across the The states.
Legalization of cannabis products has been a boon for state budgets, with states reporting a combined total of $x.4 billion in tax revenue from cannabis sales equally of the shut of 2021, not including any revenue produced by medical marijuana distribution. Local towns and cities with thriving marijuana operations have likewise generated millions.
Here are the statistics on how much states make from marijuana taxes, how they tax cannabis, and what they apply that money for.
Marijuana revenue enhancement revenue by country 2021
The tabular array beneath shows the revenue collected in states with operational marijuana programs in 2021. Full tax nerveless varies depending on state population, how long the programme has been established, and the method of revenue enhancement.
Country | 2021 marijuana tax revenue |
---|---|
Alaska | $xxx,054,250 |
Arizona | $219,413,828 |
California | $1,294,632,799 |
Colorado | $423,486,053 |
Illinois | $317,074,562 |
Maine | $4,910,962 |
Massachusetts | $176,731,045 |
Michigan | $246,657,520 |
Nevada | $157,752,000 |
Oregon | $178,262,488 |
Washington | $559,500,000 |
A number of states have legalized recreational marijuana only have a less-than-fully operational market. In 2021, the Tax Foundation has estimated excise tax revenue for states with a market that has been operational for at to the lowest degree three years. Here's how much these states may stand to brand once their markets are fully established:
State | Estimated annual marijuana excise revenue enhancement acquirement from fully operational market |
---|---|
District of Columbia | $26,605,996 |
Montana | $35,142,502 |
New Bailiwick of jersey | $158,974,353 |
Vermont | $27,313,974 |
Of course, these states aren't likely to run across these numbers in excise tax revenue until at least three years after they establish a market. Seeing numbers in the $2–$10 million range is more likely in early years.
But these states are taking steps to bring in some of that revenue, even if they're moving slowly.
How much revenue are other states leaving on the table?
Using average excise taxation figures and the number of marijuana-using residents in each state, the Revenue enhancement Foundation estimated the potential excise revenue enhancement revenue with a market established for at to the lowest degree three years.
Here's what they found:
Land | Potential Marijuana Tax Acquirement |
---|---|
Alabama | $92,217,856 |
Arkansas | $59,314,764 |
Delaware | $24,566,974 |
Florida | $448,740,070 |
Georgia | $198,400,771 |
Hawaii | $28,453,985 |
Idaho | $33,295,445 |
Indiana | $157,009,061 |
Iowa | $50,183,462 |
Kansas | $42,058,743 |
Kentucky | $83,008,154 |
Louisiana | $81,616,779 |
Maryland | $135,837,117 |
Minnesota | $122,072,389 |
Mississippi | $47,304,242 |
Missouri | $119,222,374 |
Nebraska | $35,975,930 |
New Hampshire | $44,163,575 |
North Carolina | $182,947,622 |
Northward Dakota | $13,231,599 |
Ohio | $220,827,478 |
Oklahoma | $67,680,000 |
Pennsylvania | $244,553,615 |
Rhode Island | $35,455,500 |
South Carolina | $96,680,914 |
Tennessee | $132,509,552 |
Texas | $397,424,206 |
Utah | $44,428,908 |
W Virginia | $38,327,540 |
Wisconsin | $117,791,078 |
Wyoming | $10,054,045 |
Medical marijuana taxation collection
Not all states break down their acquirement reports past medical versus recreational marijuana, but the table below shows the sources of taxation revenue by type of cannabis use when data is available.
State | Revenue from Medical Marijuana | Revenue from Adult Use Recreational Marijuana |
---|---|---|
Arizona | $50,002,000 | $63,413,000 |
Maine | $iii,969,914.00 | $941,048 for recreational |
Nevada | $147 | $157,752,000 |
Full tax collections by country
Colorado and Washington were leaders in the recreational marijuana movement, interim as early every bit 2012 to motility toward legalization. Every bit a outcome, information technology comes every bit no surprise that they've generated more revenue from marijuana taxes than other states, some of which accept had an operational market place for two years or less.
All the same, the tables below evidence the tremendous potential for states to generate meaning revenue over time. In fact, the Revenue enhancement Foundation estimates the market for legal marijuana could exist worth every bit much as $xxx billion past 2023.
With states facing budget shortfalls resulting from COVID-19, revenue from recreational marijuana could be a much-needed lifeline in locations that pursue legalization or facilitate the expansion of current markets.
Country | First year of tax drove | Full revenue collected (as of end of 2021) |
---|---|---|
Alaska | 2017 | $85,901,000 |
Arizona | 2021 | $217,553,000 |
California | 2018 | $3,362,314,514 |
Colorado | 2014 | $2,018,933,005 |
Illinois | 2020 | $369,858,000 |
Maine | 2018 | $ix,953,000 |
Massachusetts | 2019 | $280,523,672.43 |
Michigan | 2020 | $292,357,520 |
Nevada | 2018 | $431,877,703 |
Oregon | 2016 | $586,628,394 |
Washington | 2015 | $ii,346,930,000 |
Now let'due south take a look at how cannabis tax revenue has grown over the years for each state -- equally well as how those states are using that money.
Alaska's marijuana revenue enhancement revenue
Alaska approved the legalization of marijuana in 2014 under Ballot Measure out ii. Retail sales began in October of 2016. The Marijuana Control Lath was tasked with both licensing and tracking cannabis operations statewide.
Year | Alaska state marijuana taxation revenue |
---|---|
2017 | $1,749,497 |
2018 | $10,801,357 |
2019 | $19,082,542 |
2020 | $24,213,296 |
2021 | $30,054,250 |
How does Alaska tax marijuana?
Alaska taxes cultivators per ounce and type: $l per ounce for mature flowers, $25 per ounce for immature flowers, and $1 for each clone.
How does Alaska spend marijuana tax revenue?
- 25% to the general fund.
- 50% to the Section of Public Safety, Health and Social Services, and Department of Corrections.
- 25% to the Marijuana Instruction Fund.
Arizona's marijuana tax acquirement
Arizona voters approved Proposition 216, the Marijuana Legalization Initiative, in 2020. This ballot initiative legalized recreational marijuana nether the purview of the Arizona Section of Health and Human Services. DHS began to license retail establishments on January 16, 2021.
In its offset year of operations, Arizona collected more than $217 million in tax revenue from both developed use sales, medical apply sales, and excise taxes.
Twelvemonth | Arizona state marijuana tax revenue |
---|---|
2021 | $217,553,000 |
How does Arizona tax marijuana?
Arizona imposes two taxes on marijuana:
- A xvi% excise revenue enhancement
- A transaction privilege tax
How does Arizona spend marijuana tax acquirement?
Excise tax revenues are dedicated to:
- Community colleges
- Municipal constabulary
- Fire districts
- The Highway User Fund
- The Justice Reinvestment Fund
- The Chaser General
California's marijuana tax acquirement
California legalized marijuana in 2016 nether Proposition 64, a ballot initiative. The first retail sales in the land began in January of 2018 and in Nov of that year, medical marijuana was exempted from the state sales tax. The Section of Cannabis Control was vested with responsibility for taxation and licensing.
Twelvemonth | California state marijuana tax revenue |
---|---|
2018 | $397,720,611 |
2019 | $638,081,178 |
2020 | $1,031,879,926 |
2021 | $ane,294,632,799 |
How does California tax marijuana?
California taxes are as follows: $9.65 per ounce for bloom, $2.87 per ounce for leaves, and $1.35 per ounce for fresh found.
How does California spend marijuana tax revenue?
- First, the revenue covers regulatory and research costs.
- Then, lx% goes to anti-drug programs targeting kids;
- twenty% goes to environmental programs; and
- 20% goes to public prophylactic.
Colorado's marijuana tax revenue
Year | Colorado country marijuana tax acquirement |
---|---|
2014 | $67,594,323 |
2015 | $130,411,173 |
2016 | $193,604,810 |
2017 | $247,368,473 |
2018 | $266,529,637 |
2019 | $302,458,426 |
2020 | $387,480,110 |
2021 | $423,486,053 |
How does Colorado tax marijuana?
Colorado has a fifteen% wholesale excise taxation on marijuana too every bit a 15% retail excise tax. Recreational marijuana is exempted from full general sales taxation.
How does Colorado spend marijuana revenue enhancement revenue?
- ten% goes to local governments.
- 90% goes to the land regime.
- fifteen.56% of the state revenue goes to the general fund.
- 12.59% goes to the state public school fund.
- 71.85% goes to the marijuana taxation cash fund.
The cannabis tax revenue from the wholesale tax goes to the Building Splendid Schools Today (BEST) fund. The first $40 million is earmarked for constructing new schools.
Connecticut'south marijuana tax acquirement
On June 22, 2021, Governor Lamont signed SB 1201 into law, legalizing cannabis for recreational utilise. Retail sales will brainstorm past the end of 2022.
The State Office of Financial Analysis anticipates total state and municipal tax revenue volition equal $4.1 one thousand thousand in financial year 2022, and volition reach 73.4 million by fiscal year 2026.
How will Connecticut tax marijuana?
Connecticut will impose the following taxes on recreational marijuana:
- Excise tax of 0.625 cents per milligram of THC for cannabis flower
- Excise taxation of 0.9 cents per milligram for other products
- 2.75 cents per milligram for edibles
- vi.35% retail sales tax
- 3% municipal sales tax
How volition Connecticut spend marijuana tax revenue?
During the kickoff ii fiscal years, acquirement generated from Cannabis sales will exist used to support administrative costs. In subsequent years:
- 15% will get to the general fund
- 60% of the remaining revenue volition get towards social equity programs
- 25% of the remaining revenue will go towards substance misuse treatment programs
Illinois's marijuana tax revenue
Recreational cannabis use was approved in Illinois in May of 2019 when the Cannabis Regulation and Revenue enhancement Act passed under House Nib 1438. The Governor signed the legislation into police in June of the same yr, and retail sales began January 1, 2020.
Year | Illinois state marijuana revenue enhancement revenue |
---|---|
2020 | $52,783,471 |
2021 | $317,074,561 |
How does Illinois tax marijuana?
Illinois charges 7% of cannabis products' value in wholesale taxes. It also levies the following retail taxes:
- 10% of value for cannabis products with 35% THC or less,
- 25% of value for cannabis products with more 35% THC, and
- 20% of value for infused cannabis products that can't be smoked.
General sales tax too applies.
How does Illinois spend marijuana tax revenue?
- 35% to the general fund.
- 25% to the Illinois Recover, Reinvest and Renew Plan.
- 20% to mental wellness and substance abuse.
- 10% to pay state bills.
- 8% to local government.
- 2% to public instruction.
Maine's marijuana tax revenue
Maine legalized marijuana in 2016 under a ballot initiative, Ballot Question 1. In response, the Legislature passed LD 1719, an Act to Implement a Regulatory Construction for Adult Utilize Marijuana. The Legislature overrode the governor's veto of the nib and retail sales began on Oct 9, 2020.
Yr | Maine land marijuana tax acquirement |
---|---|
2018 | $ 2,444,917.74 (medical but) |
2019 | $ 2,597,338.25 (medical only) |
2020 | $4,911,000 (medical and recreational) |
The State of Maine operates on a fiscal year that runs from July 1 through June 30. Accordingly, acquirement and expense data from state fiscal year 2020 covers the menses from July 1, 2019 through the conclusion of the financial yr on June thirty, 2020.
How does Maine tax marijuana?
Here's how Maine taxes marijuana cultivators:
- $335 per pound of flower.
- $94 per pound of trim.
- $1.fifty per seedling or young plant.
- $0.30 per seed.
Consumers will too pay a ten% sales tax.
How does Maine spend marijuana revenue enhancement acquirement?
- 12% to Adult Use Marijuana Public Health and Safety Fund.
- 88% to the general fund.
Massachusetts'southward marijuana taxation revenue
Recreational marijuana use was approved in 2016 under Ballot Question iv. While retail sales were originally set up to begin in Jan of 2018, this was delayed until July 1, 2018 nether Legislation H 3818. The state's showtime retail store opened in November of 2018.
Year | Massachusetts state marijuana tax acquirement |
---|---|
2019 | $22,058,544 |
2020 | $81,734,083 |
2021 | $176,731,045.43 |
How does Massachusetts tax marijuana?
In Massachusetts, retail cannabis customers pay a retail excise tax of ten% plus a general sales tax of half-dozen.25%.
How does Massachusetts spend marijuana revenue enhancement revenue?
Sales taxation revenue goes to the full general fund, the Massachusetts Bay Transportation Authorization, and the School Edifice Authority.
The excise tax support programs like the Alcoholism Assistants and the Cannabis Control Committee.
Montana's marijuana tax revenue
Marijuana was legalized in a 2020 ballot initiative, Montana I-190. Under the Marijuana Legalization and Tax Initiative, retail sales began in 2022.
In January of 2022, an estimated $22.6 1000000 in marijuana sales were made and generated $2.96 million in tax revenue.
How does Montana taxation marijuana?
Montana has split tax structures for recreational and medical marijuana. The post-obit taxes utilise:
- 20% adult utilize recreational sales tax
- four% medical use sales tax
How does Montana spend marijuana tax revenue?
Montana's marijuana taxation revenue is distributed as follows:
- $6,000,000 to the Eye program
- 20% of remaining revenue to Fish, Wild fauna and Parks
- $200,000 to veterans and surviving spouses
- $150,000 to crisis treatment and training
- Remainder to general fund
Michigan's marijuana tax revenue
Michigan legalized recreational marijuana in 2018 and its first dispensaries opened in December of 2019.
Twelvemonth | Michigan state marijuana tax acquirement |
---|---|
2020 | $45,700,000 |
2021 | $246,657,520 |
How does Michigan revenue enhancement marijuana?
Consumers currently pay a x% excise taxation and vi% sales tax. The excise taxation applies only to recreational, not medical marijuana.
How does Michigan spend marijuana tax acquirement?
In the offset two years of legalization, $xx million in revenue will go to medical marijuana research. The residual will be split betwixt cities, townships, villages, counties, the state'due south School Aid Fund, and the Michigan Transportation Fund.
Nevada's marijuana taxation revenue
Recreational marijuana sales were canonical in 2016 nether Election Question 2. The ballot initiative indicated retail sales were to kickoff in January of 2017, the Section of Taxation pushed the start appointment back to July 1, 2017.
Year | Nevada state marijuana tax revenue |
---|---|
2018 | $69,759,783 |
2019 | $99,184,973 |
2020 | $105,180,947 |
2021 | $157,751,743 |
How does Nevada taxation marijuana?
Nevada taxes weed at the retail (10% of buy) and wholesale (xv% of fair market value) levels. There is also a half dozen.85% sales taxation as well as local taxes charged in some municipalities.
How does Nevada spend marijuana taxation acquirement?
Income from the retail tax goes to the state'south rainy mean solar day fund. Acquirement from the wholesale tax goes to encompass expenses and boost the rainy fund as well.
New Mexico's marijuana taxation acquirement
In March of 2021, the New Mexico legislature passed the Cannabis Regulation Human activity to allow commercial product and sales to residents 21 and over. Commercial sales are expected to begin on April one, 2022.
The Legislative Finance Commission estimates that the outset fiscal year of recreational marijuana sales would produce approximately $nineteen.1 million in net state taxation revenue and an additional $9.4 meg in revenue for local governments. The state tax acquirement is expected to increase to $30.1 meg in fiscal twelvemonth 2023 to 2024.
How will New Mexico tax marijuana?
New Mexico will impose several taxes on recreational cannabis including the following:
- A 12% excise tax, which will increase to 18% by 2030
- A gross receipts tax, which varies past county
The revenue enhancement on medical marijuana was dropped considering of the imposition of the tax on legalized recreational marijuana.
How will New Mexico spend marijuana tax revenue?
New United mexican states will distribute the proceeds from the excise taxation to municipalities and counties.
New York'south marijuana tax revenue
Recreational marijuana sales were legalized in New York by S. 854, which was signed into law by Governor Andrew Cuomo in March 2021. Retail sales are expected to brainstorm on April one, 2022.
The offset year of retail sales is expected to produce $20 1000000 in tax revenue and fees, which is projected to grow to $115 meg in 2022 to 2023; $158 million in 2023 to 2024; and $245 meg in 2024 to 2025.
How will New York tax marijuana?
New York will impose the following taxes on marijuana sales:
- 0.5 cent/milligram of THC in bloom
- 0.eight cent/milligram of THC in concentrate
- 0.3 cent/milligram of THC in edibles
- nine% retail taxation
- iv% country local revenue enhancement
How volition New York spend marijuana taxation revenue?
New York is expecting to use the revenue enhancement revenue from marijuana sales to offset the decline in revenue resulting from a reduction in taxable cigarette consumption.
Oregon's marijuana tax revenue
Oregon legalized recreational marijuana in 2014 when voters approved Initiative Measure out 91. In 2015, the legislature approved a bill allowing retail sales to offset Oct 1, 2015. Sales were initially managed through medical dispensaries and the state began granting recreational licenses in Oct of 2016.
Year | Oregon state marijuana tax acquirement |
---|---|
2016 | $20,652,983 |
2017 | $70,263,897 |
2018 | $82,203,729 |
2019 | $102,094,948 |
2020 | $133,150,349 |
2021 | $178,262,488 |
How does Oregon tax marijuana?
Oregon retailers charge a 17% state retail tax on marijuana products.
How does Oregon spend marijuana tax revenue?
- twoscore% to the state school fund.
- twenty% to mental health, alcoholism, and drug services.
- xv% to the Oregon country police.
- 5% to the Oregon Health Authority for drug treatment and prevention.
- xx% to cities and counties.
Vermont'south marijuana tax revenue
Vermont legalized the possession of recreational marijuana in 2018, though taxes have simply more than recently been passed. Retail sales operations are expected to brainstorm on October ane, 2022.
How will Vermont tax marijuana?
The state of Vermont imposes a 14% excise tax on marijuana at the point of sale. There'due south also a half-dozen% general sales tax.
A inquiry study published by the RAND Corporation suggests that aggressive tax could produce between $20 and $75 million in almanac acquirement for the state.
How will Vermont spend marijuana tax revenue?
Bill S.54 states that "acquirement from the sales and apply tax imposed . . . on retail sales of cannabis or cannabis products in this State shall be used to fund a grant program to offset or expand afterschool and summer learning programs, with a focus on increasing admission in underserved areas of the Country."
Washington'due south marijuana tax revenue
Sales of marijuana were legalized in 2012 after voters approved Measure Initiative 502. The State Liquor Control Board was vested with responsibility for regulating and taxing cannabis sales. Retail sales offset began in July of 2014 and medical dispensaries have been required to have a retail license since June of 2016.
Year | Washington state marijuana revenue enhancement revenue |
---|---|
2015 | $64,630,000 |
2016 | $186,000,000 |
2017 | $315,200,000 |
2018 | $362,000,000 |
2019 | $390,400,000 |
2020 | $469,159,137 |
2021 | $559,493,474 |
How does Washington tax marijuana?
Washington charges a 37% retail tax on marijuana besides every bit a 6.v% retail sales revenue enhancement. Medical cannabis is exempt from sales revenue enhancement.
How does Washington spend marijuana revenue enhancement revenue?
It goes to a diversity of places. Here are a few of the places that money went in 2020:
- The state wellness authorization for a healthy youth survey.
- The University of Washington for marijuana-related educational programs.
- The state's health professions account.
- Various state departments for enquiry related to pesticides, licensing, accreditation, and testing.
The status of marijuana legalization effectually the U.s.a.
All of this taxation acquirement may play a office in legalization discussions. But some states haven't been swayed. Hither are the states where cannabis is legal, illegal, criminalized, or somewhere in the middle:
State | Marijuana Legalization Status |
---|---|
Alabama | Medical merely |
Alaska | Recreational legalized |
Arizona | Recreational legalized |
Arkansas | Medical only |
California | Recreational legalized |
Colorado | Recreational legalized |
Connecticut | Recreational legalized |
Delaware | Medical merely |
Commune of Columbia | Recreational legalized |
Florida | Medical only |
Georgia | Medical CBD oil merely |
Hawaii | Medical only |
Idaho | Illegal |
Illinois | Recreational legalized |
Indiana | Medical CBD oil only |
Iowa | Medical CBD oil only |
Kansas | Illegal |
Kentucky | Medical CBD oil merely |
Louisiana | Medical just |
Maine | Recreational legalized |
Maryland | Medical only |
Massachusetts | Recreational legalized |
Michigan | Recreational legalized |
Minnesota | Medical only |
Mississippi | Medical only |
Missouri | Medical only |
Montana | Recreational legalized |
Nebraska | Illegal |
Nevada | Recreational legalized |
New Hampshire | Medical only |
New Jersey | Recreational legalized |
New Mexico | Recreational legalized |
New York | Recreational legalized |
North Carolina | Illegal |
North Dakota | Medical only |
Ohio | Medical only |
Oklahoma | Medical only |
Oregon | Recreational legalized |
Pennsylvania | Medical simply |
Rhode Island | Medical only |
South Carolina | Illegal |
South Dakota | Medical only |
Tennessee | Medical CBD oil just |
Texas | Medical CBD oil but |
Utah | Medical merely |
Vermont | Recreational legalized |
Virginia | Recreational legalized |
Washington | Recreational legalized |
Westward Virginia | Medical only |
Wisconsin | Medical CBD oil only |
Wyoming | Illegal |
Sources
- Alaska Department of Revenue (2022). "Marijuana Taxation Annual Study Information."
- Boesen, Ulrik (2021). Tax Foundation. "Several States Because Legal Recreational Marijuana."
- California Department of Tax and Fee Administration (2022). "Cannabis Taxation Revenues."
- Colorado Section of Revenue (2022). "Marijuana Revenue enhancement Reports."
- DISA Global Solutions (2022). "Map of Marijuana Legality by Land."
- Federation of Tax Administrators (2022). "Status of State Tax/Sales of Marijuana."
- Fernandez, Cynthia (2022). Grown In. "Michigan's cannabis tax revenue blew up in 2021."
- Illinois Department of Revenue (2022). "Annual Written report Fiscal Year 2021."
- Maine Section of Administrative and Financial Services (2022). "Adult Use Marijuana Program."
- Marijuana Policy Project (2022). "Cannabis Tax Revenue in States that Regulate Cannabis for Adult Use."
- Part on the Comptroller, Commonwealth of Massachusetts (2022). "Total Tax Revenue Collections."
- Oregon Department of Revenue (2022). "Oregon marijuana taxation statistics."
- Land of Nevada Section of Taxation (2022). "Annual Report Fiscal Year 2021."
- Washington State Liquor and Cannabis Board (2022). "Annual Report Fiscal Year 2021."
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