Taxes

Arkansas Gov. Sarah Huckabee Sanders (R) said in a recent address that she plans to use tax revenue generated by the state’s medical cannabis industry to fund free meals in schools around the state.

The New York adult-use cannabis industry recently exceeded $1 billion in total sales according to the annual Office of Cannabis Management industry report.

California state officials said the state has collected over a quarter of a billion dollars in cannabis tax revenue during the third quarter of 2024.

An appellate judges panel in Missouri recently ruled that local governments cannot stack cannabis sales taxes, overturning a lower court’s decision from May.

New York cannabis regulators expect to see $800 million in retail cannabis taxes by the end of the year, far short of the $5 billion estimated by the state when it legalized adult-use cannabis.

The American Institute of CPAs is asking the Internal Revenue Service (IRS) to provide tax guidance for cannabis businesses as the Biden Administration moves to reschedule cannabis under federal law.

After two years of legal adult-use sales, New York cannabis tax grants are finally available to fund reinvestment in the state’s communities most heavily affected by prior drug policies.

Maryland collected nearly $22.4 million in cannabis taxes during the second quarter of 2024, a 52% increase from the previous quarter.

Lawmakers in Pennsylvania filed a bipartisan bill on Monday to legalize adult-use cannabis. The bill, which calls for regulating the adult-use industry and expunging past cannabis crimes, was filed on state lawmakers’ first day back from recess.

Cannabis tax revenues have declined in California year-over-year for the last four years, with total taxable cannabis sales in Q2 2024 down by a third since the same time period in 2021.

Michigan cannabis retailers set a new monthly sales record of $295.4 million in August, which marked the third consecutive month of increasing sales for the state.

North Dakota Tax Commissioner Brian Kroshus estimates the state could generate $7.281 million every two years in adult-use cannabis taxes based on a 5% sales tax rate.

Illinois surpassed $1 billion in combined adult-use and medical cannabis sales this year by July 1, about two weeks earlier than the previous year.

Minnesota officials reported earning more than $10 million in taxes on hemp-derived THC products since the state’s low-potency hemp market launched nearly a year ago.

Maryland collected about $14.7 million in cannabis taxes during the first quarter of 2024, according to recent data from the state Office of the Comptroller.

Missouri cannabis taxes have generated over $19 million to support veterans, expand the state’s substance use treatment programs, and fund the Public Defenders System.

In the approximately 10 years since Colorado and Washington launched the country’s first adult-use cannabis markets, U.S. states with cannabis legalization policies have generated more than $20 billion in tax revenue on adult-use cannabis products.

Alaska’s House of Representatives voted last week to replace the state’s $50-per-ounce tax structure on adult-use cannabis products with a 7% sales tax on retail cannabis transactions. The proposal still must pass the Senate before going to the governor.

A St. Louis, Missouri County Circuit judge has ruled that city and county governments can each stack an additional 3% sales tax on adult-use cannabis sales.

Combined medical and adult-use cannabis sales totaled just under $125 million in March, setting a new monthly cannabis sales record for the state.

A recent report found that a total of $3.8 billion worth of delinquent payments currently affects the U.S. medical and adult-use cannabis industries, with total late payments on track this year to reach $4.2 billion.

The New York Senate’s recent budget approval allocates $128 million to aid the state’s struggling cannabis industry, introducing financial support for farmers and tax adjustments amidst criticism over the slow rollout of the market.