Cannabis Sales Tax Numbers Are A Boomin…….

The last year has been challenging for the global economy and the waters remain choppy as it tries to recover from the Covid pandemic. 

Just as it looked like major economies were going back to normal, inflation started surging and Russia declared war on Ukraine. While these setbacks have slowed down the pace of the recovery, the states that legalized recreational cannabis in the US generated more than $3.7 billion in tax revenue from recreational cannabis sales in 2021 (according to a report from the Marijuana Policy Project).

The amount reported by Marijuana Policy Project (MPP) does not include medical cannabis tax revenue, application and licensing fees paid by cannabis firms, income taxes for employees of companies, or corporate taxes. This means that the actual amount of cannabis tax revenue could be north of $4 billion and we find this to be significant. 

According to the MPP’s report, California reported the most recreational cannabis tax revenue and generated approx. $1.3 billion in 2021. Illinois and Washington state were two major contributors and accounted for more than $1 billion of tax revenue combined. 

MPP’s report provided a year-by-year breakdown for all recreational cannabis sales tax revenue combined and we find the growth to be significant:

•   2014: $68,503,980
•   2015: $264,211,871
•   2016: $530,521,110
•   2017: $723,145,481
•   2018: $1,275,483,830
•   2019: $1,707,204,090
•   2020: $2,766,027,570
•   2021: $3,715,994,252

Numbers don’t lie; and these numbers are showing us that cannabis is big business. Over the next year, we expect to see more conservative states legalize recreational cannabis to support the economic recovery and believe our readers need to be aware of how big the market is and how fast it is growing. 

If you are interested in learning more about the US cannabis industry, please send an email to support@technical420.com with the subject “US Cannabis Industry” to be added to our distribution list.

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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