$5.7B Cannabis Tax Harvest: New Federal Data Reveals States' Windfalls

In a significant stride, the U.S. Census Bureau unveils its novel experimental data product, casting light on state-level cannabis sales tax collections.

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Federal Census Bureau Report

This report, rooted in the "Quarterly Summary of State and Local Government Tax Revenue," breathes life into figures commencing from the 3rd quarter of 2021.

“The U.S. Census Bureau has released its first report on state-level marijuana tax revenue data following a complete canvass of all state agencies,” encapsulating an 18-month trajectory from July 2021, during which states amassed over "$5.7 billion from licensed cannabis sales."

California’s titanic market alone raked in over "$1.4 billion in sales tax revenue" with Washington state and Colorado trailing with "$818.5 million" and "$648.1 million" respectively. New York, still in its infancy with a sparse spread of retailers, garnered "$27.9 million," as reported by Marijuana Moment.

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While Data Is Illuminating, Gaps Persist

Instances where states, despite being cannabis excise tax collectors, failed to furnish data are earmarked with an “NA,” highlighting the absence of information. The Census Bureau underscored, "data in this experimental data product should not be used to estimate the total cannabis sales tax collected for the U.S.”

This newly minted data repository, promised to be a quarterly offering, is indicative of a federal shift in stance, moving towards embracing the burgeoning cannabis sector. The Census Bureau stated that these “new tracking and reporting efforts” underscore “an increasing willingness by the federal government to acknowledge the billions of dollars flowing into state coffers annually as the result of state-level marijuana legalization.”

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Nevertheless, contradictions lurk. The Bureau confesses its figures might diverge from state-reported data owing to variances in definitional interpretations of ‘state government’.

“Taxes” in this context, the Census elucidates, embraces “all compulsory contributions exacted by a government for public purposes,” inclusive of related penalty and interest receipts but exclusive of protested amounts.
Read the full story here at Marijuana Moment.

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