Taxes

Rhode Island Governor Dan McKee is proposing tax relief for cannabis operators by decoupling state and federal taxes, aiming to alleviate the financial burden imposed by IRS code 280E on the industry, with potential savings estimated in the millions.

Illinois earned $416 million in tax revenue last year from the state’s legal cannabis program after licensed retailers sold a record $1.6 billion worth of cannabis products.

A think-tank focused on taxation in the US has released a report detailing how federal cannabis legalization could generate over $8 billion in annual tax revenue.

Arkansas is using medical cannabis tax revenues to fight food insecurity in the state, with $87 million sent to schools throughout the state to help students access low-cost or free lunches.

Ohio lawmakers are seeking to change the state’s voter-approved cannabis legalization bill with a proposal that would remove provisions to stop municipalities from banning cannabis operations and home cultivation, and change how cannabis taxes are earmarked in the state.

The Missouri Department of Health and Senior Services this week transferred $13 million in revenue from the state’s medical cannabis program to the Missouri Veterans Commission.

Arkansas medical cannabis sales have totaled $211.3 million so far this year, with the state having collected $23.5 million in cannabis tax revenue, according to state data.

Denver, Colorado has collected more than a half-billion dollars in cannabis tax revenue and industry fees since the city’s first dispensaries opened, topping $501.5 million for the city in August.

Adult-use cannabis dispensaries in Rhode Island set a new monthly sales record of $7.11 million in September, putting sales on track to meet the state’s annual cannabis revenue projections of $76 million for fiscal year 2023.

The U.S. Census Bureau has released an interactive map outlining the quarterly revenue in cannabis taxes earned by states with cannabis legalization policies in place.

A Missouri cannabis retailer is suing the state claiming that the practice of stacking sales taxes on adult-use cannabis products is unconstitutional.

Alaska lawmakers are considering changing the state’s cannabis tax system from a per-ounce tax (cannabis is currently taxed at $50 per ounce) to a sales tax.

While adult-use cannabis products are still technically unavailable in Minnesota, the state collected nearly $600,000 in tax revenues last month from THC-infused gummies and drinks (derived from hemp).

For the first time, the Montana Fish and Wildlife Commission is set to receive more than $1 million in cannabis tax revenues; typically, the commission is funded by contributions from residents that can generate between $30,000 and $40,000.

Colorado’s cannabis tax revenues from the 2022-2023 fiscal year are outpacing the state’s tax revenues from cigarettes, other tobacco and nicotine products, and alcohol.

A recent Ohio State University study found that adult-use cannabis sales in the state could generate between $275 million and $403 million in tax revenues by the fifth year of operations.

Medford, Oregon-based American Patriot Brands owes the state $27 million in back taxes, more than any other company in the state.

Montana state lawmakers have voted to override Gov. Greg Gianforte’s (R) veto of a bill to use cannabis taxes to fund the Wildlife Habitat Improvement Program and maintain county roads.

A recent report by Whitney Economics found that just 24.4% of U.S. cannabis companies currently turn a profit, down 42% from the year prior.

Lawsuits filed by the Montana Association of Counties and the Montana Wildlife Federation are challenging Gov. Greg Gianforte’s (R) recent veto of a bill that sought to use cannabis taxes as a supplement to road maintenance funds.

Connecticut’s combined adult-use and medical cannabis sales totaled nearly $23 million in May, a new record since the state’s January launch of legal recreational sales.