Taxes

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.

A California auction of confiscated paraphernalia aiming to recover over $14.4 million in unpaid cannabis taxes yielded far less than expected, raising only $2,075.

New Jersey’s cannabis sales have reached over $2 billion since 2018, with a significant boost from the adult-use market launched two years ago, as reported by the state’s top cannabis regulator to lawmakers.

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.