skip to Main Content
Legal marijuana offers small state tax revenue boost: Moody’s

SAN FRANCISCO (Reuters) – Tax revenue from recreational marijuana makes up a small percentage of annual general fund revenues in states with the most established retail markets, such as Colorado, Washington and Oregon, Moody’s Investors Service said on Tuesday.The boost in tax revenues is marginally credit positive in states with a nascent legalized weed industry, the rating agency said, including in larger states like California.

Cities and counties are more likely to see a bigger impact from local marijuana taxes because of their relative size, Moody’s found. Some municipalities have prohibited local retail marijuana sales, in order to avoid the potential strain on law enforcement.

Twenty-nine states nationwide have legalized some form of marijuana. Nine states permit recreational use. Canada is planning to legalize weed later this year.
Colorado and Washington, two states with the most established retail weed industries, offer examples of how tax revenues can quickly ramp up in the years after legalization. Both states now anticipate collecting hundreds of millions of weed-related tax revenues annually. But ultimately that makes up 2 percent or less of the states’ total general fund revenues. [Read more @Reuters]


This Post Has 2 Comments
  1. And they will continue not to achieve the tax revenues while more and more cannabis businesses go back underground. EXCESSIVE over-regulation and taxation has decimated the marketplace in California. Farms for sale everywhere!

  2. It is a shame that all of these regulating bodies are stifling the industry with heavy taxes and regulations. IRS 280E is bad enough on cannabis companies, something I unfortunately have to remind people on a daily basis as a CPA in cannabis, but people often forget about the OTHER taxes that stifle the industry. Sales taxes can kill a market, ask Washington State.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Stories

Ninth Circuit Denies Citizenship to Foreign-born Washington State Dispensary Owner

A three-judge panel of the United States Court of Appeals for the Ninth Circuit issued a cut-and-dried opinion Friday affirming last year’s district court summary judgment denying Maria Elena Reimers…

Black Farmer Cannabis Bill Passed in Florida

By Fred Rocafort, Attorney at Harris Bricken Black farmers in Florida stand to benefit from a medical cannabis bill passed in the waning days of the state legislature’s 2023 session.…

Frequent marijuana users tend to be leaner and less likely to develop diabetes. But the pseudo-health benefits come at a price, experts say

The stereotypical cannabis connoisseur perpetually has the munchies but is, paradoxically, perplexingly thin. Now researchers at the University of California, Irvine, think they know why—and no, pot consumption isn’t the…

Lawmakers scramble to fix NY’s struggling rollout of retail cannabis

Some New York lawmakers are scrambling as they enter the final week of the legislative session to implement measures to aid the state’s struggling retail cannabis market, including a proposal…

More Categories

Back To Top
×Close search