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Weed greed: Some states are raking in the tax dollars on cannabusinesses

(FINANCE) The tax profits from weed sales in these states just may be enough to push politicians toward legalizing the drug cross-country.

Weed leaves.

States are making bank on weed taxes

The Marijuana Policy Project makes the case to legalize cannabis with its recently released report. According to the report, as of December 2021, states that legalized adult-use cannabis brought in a combined total of $10.4 billion in tax revenue since 2014. This tracks the 18 states where marijuana is legalized for recreational use. It does not include medical marijuana, which would dramatically increase the figure. The figures also don’t include local tax revenue, just tax revenue at the state level, nor does the report include any licensing or business fees that are generated by the industry.

Which states are bringing in the money with cannabis taxes?

Eighteen states have legalized marijuana for adult use. In some of those states, the laws were just approved, so tax collections have not begun or not yet available. Here are some of the figure’s from the MPP report.

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State Tax collection in 2021 Total taxes received since cannabis was legalized
Colorado $367+ million (thru November) $1,791,138,715 (2014)
Washington $480+ million (thru September) $3,051,390,820 (2014)
Oregon $138+ million (thru September) $635,512,128 (2016)
Alaska $24+ million (thru October) $95,004,906 (2016)
Nevada $471+ million (through September) $471,544,647 (2017)
California $976+ million (through September) $3,123,477,637 (2018)
Massachusetts $205+ million (through November) $384,529,750 (Nov. 2018)
Michigan $188+ million (through November) $271,129,649 (Dec. 2019)
Illinois $387+ million (through November) $562,750,974 (2020)
Maine $11+ million (through November) $13,063,204 (Oct. 2020)
Arizona $121+ million (through October) $121,463,757 (2021)

 

Most states have legislation that puts the tax revenue toward specific initiatives. In Illinois, 20% of the revenue goes into mental health services. In Michigan, many of the funds have been put toward schools and transportation. California directs its revenues toward local non-profits that benefit “people adversely impacted by punitive drug laws,” and invests a portion of the money in environmental programs.

Marijuana is profitable

The Hustle reports that Denver generated over $237 million and West Hollywood in California has generated $2.2 million in one year from 6 dispensaries in less than 2 square miles. The Tulsa World reports that Oklahoma, which has only legalized medical marijuana, collected over $55 million in 2019. With more Americans leaning toward decriminalizing marijuana and making it legal, the profits to be made from marijuana sales may push politicians toward legalizing weed.

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Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.

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