Green Market Report
In the decade since the United States’ first regulated adult-use cannabis markets launched, cannabis tax revenues have become an increasingly substantial revenue stream for state governments across the country.
A new report from advocacy nonprofit Marijuana Policy Project highlights just how lucrative legalized cannabis has proven for state coffers. Through the first quarter of 2024, a total of 24 U.S. states taxing adult-use marijuana sales have collected a combined $20 billion in associated tax revenues.
Tax revenues from legal marijuana sales exploded to more than $4 billion nationwide in 2023 alone, setting a new annual record as more markets matured, according to MPP’s data compilation.
“Cannabis legalization offers tremendous financial benefits for state governments and social services and programs,” MPP said. “In many states with taxed and regulated cannabis markets, overall sales and tax revenue have quickly exceeded initial estimates.”
Leading the revenue windfall are Western states that launched adult-use markets first, including Colorado which has gained $2.4 billion in tax dollars since pioneering legal sales in 2014. Washington state has collected more than $4.1 billion from cannabis taxes and fees over the same period.
The report also showed that new adult-use markets in the Midwest and Northeast also are increasing their shares of the revenue pie. Illinois brought in more than $550 million from cannabis taxes in 2023, while Michigan topped $470 million last year.
https://www.greenmarketreport.com/states-collected-record-4b-in-cannabis-taxes-in-2023/
