Tuesday’s election was a landslide win for marijuana. Five states: Arizona, Mississippi, Montana, New Jersey and South Dakota voted in support of legalizing cannabis in some fashion. All the states, with the exception of Mississippi, approved recreational cannabis, while Mississippi has only approved marijuana use in a medical capacity. South Dakota made the most significant leap in decriminalizing marijuana? voting yes on legalizing both medical and recreational use of marijuana in a single election.
Though four states voted to legalize recreational marijuana use, consumers will still have to wait months before they can begin buying marijuana. If California, which legalized recreational marijuana use in 2018, is any example, these states can expect substantial tax revenue from the recreation of weed. The Golden State taxes 15% on marijuana sales. California brought in $208 million in excise, sales and cultivation taxes from the cannabis industry in the second fiscal quarter of 2020 alone.
Here’s a look at when dispensaries can legally set up shop for recreational use in Arizona, Montana, New Jersey and South Dakota. And also see how much states stand to make on marijuana sales.
- State taxes on recreational marijuana: 16% excise tax on marijuana, on top of sales tax