As of May 2021, America's adult-use cannabis marketplaces collectively generated $7.9 billion in tax revenue, according to the Marijuana Policy Project (MPP).
The report, which used figures from each legalized state, demonstrated how legal cannabis sales enhanced local tax bases and often funded various state services and programs, including social equity, reentry programs, public health initiatives and support for law enforcement.
Signs of the return on investment came not long after Colorado and Washington State legalized cannabis in 2014.
In 2020, Washington brought in approximately $614 million from recreational sales, up from roughly $159 million in 2015. Colorado increased from roughly $104 million in 2015 to $362 million in 2020.
Similar results occurred as additional states came online, including:
- Nevada up from $86 million in 2018 to $123 million in 2020
- Oregon up from $68 million in 2017 to $158 million in 2020
- California up from $397 million in 2018 to $1.03 billion in 2020
Newer markets appear to replicate the trend. In Michigan, its marketplace pulled in nearly $54 million between January and April 2021. The state generated $81.7 million in 2020. Illinois earned $119 million as of April 2021, compared to nearly $175 million the previous year.
Growth Expected
The market should continue to see growth, according to the analysis.
MPP cited the eventual rollout of several new markets. Eight states passed legislation in 2020 and 2021, bringing the total to 18.
Seven of the 18 states have yet to begin collecting revenue from licensing fees and taxes.
“Legalizing cannabis for adults has proven to be a wise investment. Not only are states seeing the benefits of a regulated market and far fewer cannabis-related arrests — they’re benefitting in a direct, economic way, too," Jared Moffat, MPP's state campaigns manager, said.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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