Revenue generated by adult-use cannabis markets in the U.S. is showing its true impact on the economy. According to a report  by the Marijuana Policy Project (MPP) adult-use cannabis markets generated over $20 billion in tax revenue since launching in Colorado and Washington a decade ago.

In November 2012, Colorado legalized marijuana for adults over age 21 by passing Amendment 64 to the Colorado Constitution. Washington state followed suit with a ballot initiative during the same month.

Legal markets launched shortly after, and data on states that have implemented adult-use cannabis markets has been monitored by the MPP since 2014.

“Legalizing cannabis for adults has been a wise investment,” the report reads. “Since 2014 when sales began in Colorado and Washington, legalization policies have provided states a new revenue stream to bolster budgets and fund important services and programs. Through the first quarter of 2024, states have reported a combined total of more than $20 billion in tax revenue from legal, adult-use cannabis sales. In 2023 alone, legalization states generated more than $4 billion in cannabis tax revenue from adult-use sales, which is the most revenue generated by cannabis sales in a single year. In addition to revenue generated for statewide budgets, cities, and towns have also generated hundreds of thousands of dollars in new revenue from local adult-use cannabis taxes.”

The report goes through tax revenue collected in each individual state, noting the state markets that are not yet operational. Washington’s tax rate was among the highest in the nation, at a whopping 37% at retail with a 6.5% sales tax.

“Twenty-four states have legalized cannabis possession for adults 21 and older. All but one of them—Virginia—have also legalized, regulated, and taxed cannabis sales. In two legalization states—Delaware and Ohio—sales have not begun yet.”

The economic benefits that come from legalizing adult-use cannabis should be one of the movement’s greatest selling points, the report mentions.

“It is important to note that the financial impact of legalizing and regulating cannabis for adult use is one of the many benefits of legalization,” the report concludes. “Adult-use cannabis legalization has also displaced the criminal market and freed up law enforcement resources to focus on serious crime. In legalization states, authorities actually know who is selling cannabis, where it is being sold, when, and to whom, because cannabis is produced and sold by legitimate, tax-paying businesses instead of drug cartels and criminals. Hundreds of thousands of individuals have been spared traumatic arrests, possible incarceration, and criminal records that shut the door of opportunity. Meanwhile, teenagers’ cannabis use rates haven’t increased, and voter support has grown.”

The full report, “Cannabis Tax Revenue in States that Regulate Cannabis for Adult Use,” is available from MPP. 

Aligning with Federal Data

The data appears to align with tax revenue numbers released by the federal government, released in October 2023. The combined totals reveal that states with reported cannabis excise sales tax numbers totaled out to $5.7 billion since Q3 of 2021.

A report published by the U.S. Census Bureau recently shows the progress of cannabis tax revenue numbers for each state. It’s the first report of its kind from the bureau and begins with the Q3 2021.

“The Quarterly Summary of State and Local Government Tax Revenue provides quarterly estimates of state and local government tax revenue at a national level, as well as detailed tax revenue data for individual states,” the report explains. “The information contained in this survey is the most current information available on a nationwide basis for government tax collections.”

It aligns with predictions the MPP released last year, according to a report on May 1, 2023 with data regarding cannabis tax revenue generated by states with legalization. Between 2014 and the end of 2022, the report shows that states had collected over $15.1 billion in tax revenue.

Tax revenue from 2022 alone showed more than $3.77 billion collected, which was actually the first year that total state cannabis tax revenues decreased in comparison to 2021 with $3.86 billion. Even with seeing mature cannabis states collecting a decreased amount in cannabis tax revenue and newer states collecting an increased amount, MPP notes that the numbers are influenced by sales comparisons from the pandemic.

The 2023 report also includes a year-by-year total of collected tax revenue as well. In 2014, tax revenue reached $68,503,980 and 2018 was the first year that cannabis tax revenue passed the million mark at $1,308,693,928. 

MPP’s reports show the true potential that adult-use cannabis can bring, in the form of tax revenue.

The post Adult-Use Cannabis Generates Over $20B in State Tax Revenue first appeared on High Times.

The post Adult-Use Cannabis Generates Over $20B in State Tax Revenue appeared first on Paradise Found.

The Alaskan House of Representatives recently voted on May 10 in a 36-3 vote to approve a bill that implements much needed tax reform.

House Bill 119 would change its $50 per ounce tax on cannabis to just a 7% tax, which was a recommendation from an Advisory Task Force on Recreational Marijuana. If HB-119 passed in the Senate and was signed by Gov. Mike Dunleavy, it would take effect starting July 1, 2024.

Many cannabis business owners begged for relief from the current tax situation, according to a report from Alaska Beacon in September 2023. Alaska Marijuana Industry Association legislative liaison Lacy Wilcox described business owners’ situations as “desperate,” while she spoke with the House Labor and Commerce Committee last year. 

The $50 per ounce tax has been in place since Alaska adult-use cannabis was legalized in 2014. According to a report written by the Tax Policy Center, which was released in September 2022, Alaska has one of the highest cannabis taxes. “Alaska’s $50-per-ounce tax exceeds all other weight-based tax rates and the remainder was a local percentage-of-price excise tax (Anchorage),” the report stated.

As a result, many cannabis businesses have been forced to close. “We are all in survival mode, and we are coming together to share our pain with you,” Wilcox added.

One of the task force members who attended the committee meeting in September added that the high taxes makes it hard for legal businesses to compete with the illegal industry. “I can tell you with a high degree of certainty that [marijuana] is still much cheaper on the black market. Alaska’s taxes and the burden on businesses from the Marijuana Control Board is causing prices to stay high and businesses to be uncompetitive,” said task force co-chair Brandom Emmett. They presented an estimate that 40%-50% of cannabis sold in Alaska is from the black market.

The law’s current $50 per ounce tax applies just to cannabis flower, while lower taxes exist to apply to “immature/seed/failed” flower at $25 per ounce and trim at $15 per ounce, according to a fiscal analysis from the House Finance Committee published in April 2024. The report projected that Alaska’s legal cannabis industry has matured, with “total volumes will only grow at 1% per year going forward (FY 2025+),” and that current trends show that flower “will continue until stabilizing at 15% of total ounces.”

The Alaska Advisory Task Force on Recreational Marijuana was created by Gov. Dunleavy in September 2022, which was tasked to “review current marijuana tax and fee structures, regulations applicable to marijuana operators, and to provide recommendations for improvements to the Office of the Governor.”

The task force of 13 members met six times between December 2022 and January 2023 to discuss matters of tax reformation as well as adult-use businesses collaborating with state government and possible enhancements to public safety. The recommendations were published in a final report that was released in January 2024.

According to Alaska Beacon, originally the task force presented a 3% sales tax, but Rep. Jesse Sumner claimed that it was too low and instead proposed a 10% tax (this was later lowered to 6%, followed by the one percent amendment increase to 7% in the most recent House discussion). Sumner added that the current 7% tax proposal will be more enticing to the Senate for possible approval.

In its recommendation, the task force also proposed changes to seed-to-sale plant tracking as well as license fees.

Earlier this month, the House also approved House Bill 228 in a 36-4 vote, and if fully passed it would establish a task force to analyze psychedelic-assisted therapies such as psilocybin or MDMA. The sponsor of the bill, Rep. Jenny Armstrong, said that HB-228 is a bill that would adapt well to the possibility of the federal government rescheduling those substances. “This August, it is widely anticipated that FDA will approve the most significant medicine for the treatment of mental health in decades,” said Armstrong on May 2. “House Bill 228 before us today would create a task force that would put forth recommendations for the next legislature to consider as it relates to this treatment. Whether you are excited about the idea of psychedelics getting approved, you’re neutral or you’re flat-out against it, I think we can all agree that if it is coming, we should be prepared and be thoughtful in how we approach it.”

Alaska has the most veterans per capita compared to other states, and also has one of the highest rates of violence in the country.

Most House representatives were supportive of the bill, such as Rep. Laddie Shaw who formerly held the title of director of Alaskan Veteran Affairs. “This task force gives us an opportunity to move forward with some productivity on behalf of our veterans,” Shaw explained. “We haven’t done anything for the last 50 years. Let’s move forward with something.” However, some representatives who opposed the bill called it “premature,” and preferred to wait until the federal government has made moves to reschedule psychedelic substances with medical potential.

The post Alaska House of Representatives Approved Bill To Change Cannabis Taxes first appeared on High Times.

The post Alaska House of Representatives Approved Bill To Change Cannabis Taxes appeared first on Paradise Found.

At a recent legislative meeting by the Washington, D.C.’s Council of the District of Columbia meeting on April 2, the council unanimously approved the “Medical Cannabis Patient Card Extension 4/20 Medical Cannabis Sales Tax Holiday Week Emergency Amendment Act of 2024,” which addresses three primary changes by amending the DC Official Code Title 7.

First, it makes medical cannabis patient and caregiver cards now valid for six years (previously it lasted only two years before requiring renewal).

Second, it provides the Alcoholic Beverage and Cannabis Administration (ABCA) with “emergency closure authority.” This gives the agency power to close unlicensed cannabis retailers and seize “any” cannabis products if it poses a threat to the safety of the public.

And finally, it extends the currently existing medical cannabis tax holiday (April 20-24, which was approved in 2022) to now last between April 15 to April 28.

According to councilmember Kenyan McDuffie, the measure is essential to the success of the district’s medical cannabis industry. “The popular tax holiday is critical to the district’s effort to attract qualifying patients back to the legal market as well as sustainable and viable medical cannabis program,” McDuffie said.

Prior to the measure being passed, Washington, D.C. Mayor Muriel Bowser wrote about pending legislation being considered by the council, urging them to consider the tax holiday extension. “This change will improve patient access to the program and would make the District consistent with Maryland’s six-year medical cannabis patient card,” Bowser wrote. “The bill further supports our local industry by implementing a Medical Cannabis Tax Holiday, which temporarily suspends sales taxes for purchases made at licensed medical cannabis dispensaries.”

She added that approving the ABCA’s power to shut down illegal cannabis stores is crucial. “Most importantly, this measure explicitly authorizes the Alcoholic Beverage and Cannabis Administration to close unlicensed cannabis retail stores,” Bowser explained. “As we saw in the recent tragic murder inside an unlicensed cannabis dispensary, these unlicensed stores pose a direct threat to our communities and we must take strong action to shut down bad actors.”

The murder that Bowser referenced includes the death of local rapper, Phil Da Phuture, who was working at a dispensary when a robbery took place. Although he cooperated with the robbers, he was shot, and later died at a nearby hospital.

During the meeting, council members said that there are approximately 200 illegal dispensaries operating through Washington, D.C., and only 70 of which have applied for a license.

The council also chose to veto a measure that would have changed zoning rules for placing dispensaries near schools, and discussed another measure that seeks to revisit the authority of the ABCA.

Currently, dispensaries must be located at least 300 feet away from schools or recreational areas that children frequent, although medical cannabis dispensaries are exempt from this if they stand in an industrial or commercial area. “This emergency legislation would remove that exception and prohibit all medical cannabis retailers from locating within 300 feet of schools or recreation centers,” said councilmember Brooke Pinto, who added that if passed, it would “…allow affected applicants to change their locations without negatively impacting their locations.”

Only two dispensaries would be affected by the measure if it was passed, but McDuffie explained his disapproval. “It is tough work to find a location,” McDuffie said, adding that qualifying real estate in Washington, D.C. “…is not readily accessible when it comes to what they are required to use and the restrictions we put on them in terms of where they can locate. So I can’t support this.”

Washington D.C. passed an initiative to remove criminal penalties for minor cannabis offenses in July 2014, which was followed by the passage of an initiative to tax and regulate adult-use cannabis in November 2014, which became effective in February 2015.

Earlier this year in January, the council passed emergency legislation that cracks down on illegal dispensaries relying on the “gifting” loophole to make sales. “This gap in the law, if not fixed, will render the onramp meaningless, allow unlicensed establishments that do not apply to keep on operating, and significantly harm the good actors that have applied,” said councilmember Charles Allen in a January council meeting.

The ABCA can now “issue warnings, fines, and cease-and-desist orders to unlicensed businesses that have not applied to the medical cannabis program,” according to a report from the DCist.

Unfortunately, a local illegal dispensary called Kaliiva which had already started its transition from operating illegally to applying for a legal license recently raided earlier last month. Kaliiva was one of the first illegal dispensaries to receive a placard, according to The Outlaw Report, which is the first step toward receiving a license. The DC Metropolitan Police Department (MPD), as well as the Department of Health, and the DC Licensing and Consumer Protection, have the power to conduct inspections on their own accord, despite what the ABCA has established.

The post Council of the District of Columbia Votes To Extend 4/20 Tax Holiday appeared first on High Times.

The post Council of the District of Columbia Votes To Extend 4/20 Tax Holiday appeared first on Paradise Found.

Lawmakers in Washington State “recently passed a bill granting an exemption from the 37% excise tax for medical marijuana patients and designated providers,” according to Forbes.

The passage of the measure eliminates  what has been characterized as “one of the highest tax rates imposed on medical marijuana products.” 

The bill, HB 1453, was originally introduced last year. 

Per an official legislative summary of the proposal, the bill aimed to provide “a tax exemption from the 37 percent cannabis excise tax for qualifying patients and designated providers with a recognition card on purchases of cannabis products that are labeled as Department of Health (DOH) compliant product and tested in accordance with the DOH’s rules.”

“There is levied and collected a cannabis excise tax equal to 37 percent of the selling price on each retail sale in Washington of cannabis concentrates, useable cannabis, and cannabis-infused products. This tax is separate and in addition to general state and local sales and use taxes that apply to retail sales of tangible personal property, and is not part of the total retail price to which general state and local sales and use taxes apply,” the summary said. “The tax must be reflected in the price list or quoted shelf price in the licensed cannabis retail store and in any advertising that includes prices for all cannabis products. All revenues collected from the cannabis excise tax must be deposited each day in the Dedicated Cannabis Account.”

The summary continued: “A tax exemption is provided to qualifying patients and designated providers who hold a recognition card, from the 37 percent cannabis excise tax, on their purchases of cannabis products that are labeled as a Department of Health (DOH) compliant product and tested in accordance with the DOH’s rules. Each seller making exempt sales must maintain information establishing eligibility for the exemption in the form and manner required by the Washington State Liquor and Cannabis Board (LCB). The LCB must provide a separate tax reporting line on the excise tax form for exemption amounts claimed.”

The Seattle law firm Harris Sliwoski provided more background on the measure and its journey through the Washington legislature, noting that the 37 percent tax imposed an unnecessary burden on patients.

“On March 6, 2024, the Washington Senate passed HB 1453 which will provide an exemption from the 37% excise tax for medical cannabis patients and designated providers. The bill now waits for signatures and executive action to become law. First introduced in 2023, HB 1453 sought to harmonize the existing medical exemptions from general sales and use taxes with the 37% excise tax on cannabis sales,” the law firm explained. “Medical cannabis patients and providers face a significant financial burden when patients and providers are unfairly taxed the same as recreational consumers. Primarily, medical cannabis is not recreational or a luxury, but a necessity for many people who suffer from chronic pain, epilepsy, PTSD, and other conditions. Medical cannabis is often the only effective treatment that allows them to function and improve their quality of life. Medical cannabis patients and providers must already jump through additional regulatory hoops to stay compliant with the LCB and the DOH and the imposition of additional taxes only exacerbates this hardship. Medical cannabis patients and providers follow strict rules and guidelines to access the medicine not required by recreational cannabis users and providers, and it is unjust to further penalize those medical patients and providers.”

As the firm pointed out, the 37% tax was all the more onerous given that medical cannabis is both “already expensive and not covered by insurance or public health programs.”

“Adding a tax aimed at recreational sales on top of that makes it even more unaffordable for many patients who are already struggling financially. This can force them to reduce their dosage, switch to cheaper but less effective products, or even turn to the recreational market which does not have the same DOH requirements and compliance standards,” the firm said. “Taxing medical cannabis patients the same as recreational consumers is a form of discrimination that harms their health and well-being. It also goes against the principle of harm reduction, which is one basis of medical cannabis legalization policy.”

The bill will now head to the desk of Democratic Gov. Jay Inslee. If he adds his signature, the bill “will take effect ninety (90) days after the adjournment of the current legislative session and will provide medical cannabis patients and providers a much-needed tax exemption for their medicine,” Harris Sliwoski said.

“Washington lawmakers have finally acknowledged that medical cannabis should be treated as a medicine, not a commodity, and exempted from the 37% excise tax along with the current exemption from general and local sales and use taxes,” the firm added. 

The post Washington To Do Away With 37% Medical Cannabis Tax appeared first on High Times.

The post Washington To Do Away With 37% Medical Cannabis Tax appeared first on Paradise Found.

Local news outlet WPRI reported last week that the state’s Office of Cannabis Regulation says that recreational marijuana sales “have steadily increased almost monthly over the past year, and the estimated sales for Fiscal Year 2024 is $76 million.”

“That sales estimate, if met, would translate into more than $15 million in state and local revenue: $7.6 million from the state’s 10% cannabis tax, $5.3 million from the 7% sales tax and $2.3 million from the 3% local tax,” the station reported, noting that the Office of Cannabis Regulation “estimates that, in October alone, more than $7 million worth of recreational cannabis products were sold statewide.”

Rhode Island lawmakers last year passed a bill that legalized recreational cannabis for adults aged 21 and older, making it the 19th state in the U.S. to do so.

The bill, which legalized possession of up to one ounce of cannabis for adults and also permitted possession by adults of up to 10 ounces is permitted in a private home, was approved by members of the state General Assembly in May of 2022. The measure also established the framework for legal, regulated recreational cannabis sales in Rhode Island.

“This is a truly momentous day for Rhode Island. I’m deeply grateful to Senator Miller for his years of hard work and leadership on this issue, and I’m incredibly proud to have been part of reaching this point,”  Rhode Island state Senate Majority Leader Michael McCaffrey, a Democrat, said after the legislation passed. “Ending cannabis prohibition helps us right past wrongs while creating new opportunities for all Rhode Islanders. This is the right move, at the right time, for our state.”

The bill was signed into law by Rhode Island Gov. Dan McKee, a Democrat, who later announced that legal cannabis sales would launch on December 1, 2022.

“This milestone is the result of a carefully executed process to ensure that our state’s entry into this emerging market was done in a safe, controlled and equitable manner,” McKee said last year after the sales date was announced. “It is also a win for our statewide economy and our strong, locally based cannabis supply chain, which consists of nearly 70 licensed cultivators, processors and manufacturers in addition to our licensed compassion centers. Finally, I thank the leadership of the General Assembly for passing this practical implementation framework in the Rhode Island Cannabis Act and I look forward to continuing our work together on this issue.”

The Rhodes Island Cannabis Act included “a call for applications for ‘hybrid retail licenses,’” according to the governor’s office. Those hybrid licenses “allow licensed compassion centers to sell both medical marijuana as well as safe, well-regulated and competitively priced marijuana products to Rhode Island adults over the age of 21, was issued in early October,” McKee’s office said last year.

Five cannabis dispensaries (described as “compassion centers” by the state) received approval from the state to open for business on December 1, 2022. There are currently seven licensed dispensaries in Rhode Island, although the state has allowed for 33 retail licenses to ultimately be awarded.

Matt Santacroce, interim deputy director of the Rhode Island Department of Business Regulation, said at the time that the state was “pleased with the quality and comprehensiveness of the applications we received from the state’s compassion centers, and we are proud to launch adult use sales in Rhode Island just six months after the Cannabis Act was signed into law, marking the Northeast’s fastest implementation period.” 

According to the Providence Journal, “$62.9 million worth of recreational retail marijuana has sold in Rhode Island since retail sales began last December,” although that figure “does not include sales for November, nor does it include medical marijuana sales, which are counted separately.”

Including medical marijuana sales, “total retail marijuana sales in Rhode Island top $95 million,” according to the Journal.

But as in other states that have taken the step to legalize adult-use cannabis, the change in law has also resulted in a dip in medical marijuana sales.

Erica Ferrelli, chief of strategic planning, monitoring and evaluation for the state cannabis office, told the Providence Journal that there has been a “drastic” decline in medical marijuana patients over the last year.

“Last December, 15,062 active patients bought marijuana from Rhode Island dispensaries. By October that number had fallen to 10,377,” the Journal reported.

Ferrelli told the newspaper that many patients “just find it easier to transition to the adult-use market” and pay a higher tax in order to avoid “the burden of finding a doctor, getting them to sign you into the program, which is still pretty difficult, pay for an appointment and get yourself there, which for some patients might be quite the hassle.”

The post Recreational Pot Surges in Rhode Island’s First Year of Legal Sales appeared first on High Times.

The post Recreational Pot Surges in Rhode Island’s First Year of Legal Sales appeared first on Paradise Found.

The Palm Springs City Council voted last week to put a temporary moratorium on issuing new cannabis licenses while civic leaders consider steps to rein in the growth of the regulated weed industry. The council voted 4-0 to issue the 45-day moratorium, with Councilmember Christy Holstege recusing herself from the vote because her husband has business ties to the cannabis industry.

Palm Springs, a city in the southern California desert with nearly 46,000 residents, has issued 33 licenses for cannabis retailers to operate in its jurisdiction, at least 27 of which are operational. The city thus has one dispensary for every 1,700 residents, a saturation of weed shops that is reportedly the highest in the Coachella Valley and one of the highest statewide.

The proliferation of pot dispensaries in Palm Springs has prompted some city leaders and cannabis business owners to call for steps to control the growth of the industry. Prior to Thursday’s meeting, city staff told the council that several policy options were up for discussion. Recommendations to the city council include capping the number of dispensary licenses at 15, although it is unclear how such a limit would affect current license holders. 

City staff also recommended limiting owners to one dispensary in the city, banning the sale or transfer of existing cannabis licenses and cutting the city’s cannabis taxes, which are among the highest in the Coachella Valley. A report provided to the council showed that the city’s cannabis tax revenues declined for the second fiscal year in a row. Average sales per dispensary in the city of Palm Springs have also dropped. Cannabis taxes in other cities in the Coachella Valley have also been declining, according to the report. 

City staff also recommended putting a 45-day moratorium on issuing new dispensary licenses while the council considered the recommendations.  

“I just want everyone to know this isn’t a ban. This is simply a pause,” Veronica Goedhart, the director of special program compliance for Palm Springs, told the council prior to Thursday’s vote. “A pause for us to sit back, take a look at the current regulations, the current market conditions, and try to make it better for the future.”

“We do have an oversaturation of retail businesses in Palm Springs. Our city is not very large, and we have the largest number of dispensaries in the Coachella Valley per capita,” Goedhart added. “The industry is facing a lot of challenges with taxes, and then the competition with the oversaturation. so we really want to revisit what we can do to prevent the industry from collapsing.”

As the city council discussed the recommendations, Councilmembers Jeffrey Bernstein and Lisa Middleton appeared to be in favor of taking steps to limit the number of dispensaries in Palm Springs, according to media reports. Mayor Grace Garner and Councilmember Ron deHarte seemed unsure about the prospect. In addition to declining to vote, Holstege recused herself from the discussion on the issue.

Bernstein said that he supported the cap on dispensaries because of a spike in commercial rents in areas where dispensaries are allowed. This has led longtime business owners to lose their leases, only to see the new pot shop quickly fail because of market oversaturation. Bernstein also said he believes that the city has harmed the nascent regulated cannabis industry by allowing it to grow too quickly.

Middleton also expressed concern about the cannabis industry’s effect on the real estate market in Palm Springs, agreeing that many of the existing weed shops will likely eventually fail. She was not convinced that the city’s pot taxes are too high, saying that oversaturation in the retail market was more likely responsible for its ills.

“What we’re seeing is city after city trying to cut their taxes significantly in order to save an industry that is just simply overpopulated with distribution points,” said Middleton.

The mayor asked city staff to analyze if the number of dispensaries is more than what is needed to serve the number of visitors to Palm Springs.

“I understand we have oversaturation in relation to our population,” said Garner, “but are we oversaturated in terms of the tourist economy we have?”

Garner also said that if the city council does decide to limit the number of cannabis licenses in Palm Springs, it should ensure that the changes allow for a diverse mix of businesses, including onsite consumption lounges. The mayor added that doing so would be necessary to accommodate the tourists who make up much of the local cannabis industry’s clientele.

The council decided only to enact the 45-day pause on new licenses during its meeting on October 26 while the other recommendations are considered. The moratorium currently is scheduled to end on December 10. The city council could extend the end during its next meeting, however, to give city staff more time to return with more data and new recommendations.

The post Palm Springs Puts Temporary Hold on New Cannabis Licenses appeared first on High Times.

The post Palm Springs Puts Temporary Hold on New Cannabis Licenses appeared first on Paradise Found.

A report published by the U.S. Census Bureau recently shows the progress of cannabis tax revenue numbers for each state. It’s the first report of its kind from the bureau and begins with the Q3 2021.

“The Quarterly Summary of State and Local Government Tax Revenue provides quarterly estimates of state and local government tax revenue at a national level, as well as detailed tax revenue data for individual states,” the report explains. “The information contained in this survey is the most current information available on a nationwide basis for government tax collections.”

The agency refers to this data as “an experimental product,” but showcases excise taxes collected since Q3 2021. Washington and Colorado, the first two states to legalize cannabis, led with the most in collected excise sales taxes with $818.5 million and $648.1 million. Data for Oregon however, another early adopter of legalization, only collected a total of $364.6 million during the same time frame. On the other hand, California’s total reached $1.4 billion during the same period, and Illinois collected $491 million. Newer markets such as New York collected just $27.9 million, and Vermont, which only reported tax data for Q4 2022, Q1 2023, and Q2 2023, showed a total of $6.7 million.

The report included all 50 states, even those that do not currently have legal cannabis implemented (those were signified as either an “X” for no such tax, or “NA” for data not yet available). However, the listing does include sales tax data from Washington D.C., which revealed a total of $4.4 million.

While the U.S. Census Bureau published a spreadsheet with all of the data, it did not include automatic totals. However, manual addition reveals that states with reported cannabis excise sales tax numbers totaled out to $5.7 billion since Q3 of 2021.

The agency also explained how ongoing data will be reported going forward. “Data for cannabis excise sales taxes reported for a particular quarter generally represent taxes collected on sales made during the prior quarter (i.e. data released in September 2023 will cover sales during the quarter ended June 30, 2023),” she said.

Many states reported record-breaking numbers for monthly sales revenue, which also won’t be showing on the U.S. Census Bureau reports yet. 

Illinois had numerous months showing increases in cannabis sales revenue ($451.9 million in FY23) and passing the state’s alcohol sales revenue ($316.3 million in FY23). Michigan recently hit another sales record in August, showing $276 million in July 2023, although the data regarding profits is not as positive. Another record breaker was Massachusetts, which reached sales of $152 million in June for a total of $4.74 billion since 2018.

The bureau originally announced in 2021 that it would begin to collect data on both cannabis taxes, as well as sports betting sales taxes. “Tax collection data are used to measure economic activity for the Nation as a whole, as well as for comparison among the various states. Economists and public policy analysts use the data to assess general economic conditions and state and local government financial activities,” the agency explained, according to an article on the Federal Register. “We plan to add the collection of cannabis and sports betting sales taxes.”

The bureau also announced in August 2023 that it’s working on updating its 2022 Economic Census survey questions with the rapidly growing cannabis industry in mind. “It is important for the Census Bureau to keep up with changes in technology and ask the right questions the right way to capture relevant information,” the U.S. Census Bureau stated. “In preparation for this economic census, the Census Bureau worked extensively with industry experts and researchers to update the survey.

This report shows a genuine interest in uniting cannabis sales and tax data in order to better track the industry’s progress on a nationwide scale.

A recent report from BDSA, a cannabis data analytic company, projects that the global value of the cannabis industry could reach up to $55 billion in 2027. Currently, BDSA shows newer cannabis markets as the driving force for this projection. “New York, Missouri, New Jersey and Maryland are set to experience significant market growth, with New York and New Jersey each projected to be $2.5 billion markets by 2027,” said BDSA co-founder and CEO, Roy Bingham. “While mature markets like California and Colorado continue to face stagnating or declining sales, Michigan has emerged as an outlier and is expected to become a $3.8 billion market by 2027.”

BDSA also forecasts a “return to modest sales growth” in California by 2025, with a rebounding increase in sales to $5.24 billion in 2027. But competitors such as Canada are also expected to grow, with a 9% increase in adult-use sales by the end of this year, for a total of $4.6 billion, but a decrease in sales from medical cannabis by $200 million by 2027.

The post U.S. Census Bureau Shows $5.7 Billion Collected in Cannabis Tax Revenue Since Q3 2021 appeared first on High Times.

The post U.S. Census Bureau Shows $5.7 Billion Collected in Cannabis Tax Revenue Since Q3 2021 appeared first on Paradise Found.

New Jersey Gov. Phil Murphy and Attorney General Matthew J. Platkin announced in a press release that $5.5 million in cannabis tax funds will be going toward New Jersey Hospital-Based Violence Intervention Program (NJHVIP).

The money comes directly from the state’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund. According to state law, cannabis tax funds consist of money that comes from cannabis taxes and fees to fund a variety of community services and programs.

The NJHVIP is managed by the Division of Violence Intervention and Victim Assistance (VIVA) by way of the Office of Violence Intervention and Prevention. VIVA was initially established by Platkin in September 2022 “with the goal of elevating and formalizing violence intervention and victim services work within the Department of Law and Public Safety.”

“Through the New Jersey Hospital-Based Violence Intervention Program, our Administration is making progress on our commitment to creating a safer state for all New Jerseyans,” said Murphy in a press release. “These innovative violence intervention programs allow providers to tend to vulnerable victims of violent crimes in the early days of their road to recovery in order to break the patterns of violence that have tragically taken the lives of too many New Jerseyans. We will continue to do what we can to support this work to prevent and overcome violence in our communities across the state.” 

“New Jersey’s Hospital-Based Violence Intervention Programs are essential aspects of our comprehensive approach to public safety, and they empower communities to interrupt cycles of victimization and violence,” said Platkin. “Under Governor Murphy’s leadership, we are continuing our historic investment in NJHVIPs by making available $5.5 million for these innovative services. Through this funding, we are making clear that we will use every tool and resource available to combat gun violence and violent crime that affects too many of our communities.”

VIVA executive director, Patricia Teffenhart, also expressed the importance of the NJHVIP. “Our NJHVIP partners are a key part of Attorney General Platkin’s trauma-informed, survivor-centered commitment to building safer, more resilient communities in New Jersey,” Teffenhart said. “By bringing together medical and community-based violence intervention teams that put victims at the center of service, their work supports the kind of healing that helps put victims on the road to recovery and a path to safety.”

The press release explained that hospital-based violence intervention programs like NJHVIP help support victims of crime through unified teams of “hospital clinicians, social workers, case managers, violence interventionists, and community health workers.” Services such as crisis intervention, victim compensation, and more, all serve people in need, and the $5.5 million being granted will help fund these services.

The New Jersey Hospital-Based Violence Intervention Program began in January 2020 with funds from the Victims of Crime Act (VOCA) program. New Jersey was one of the first states to implement a program with VOCA funds.

It began with nine hospital partnerships, including Center for Family Services, Trinitas Health Foundation, AtlantiCare, Capital Health, Jersey City Medical Center, RWJ University Hospital, University Hospital, Jersey Shore University Medical Center/Hackensack Meridian, and St. Joseph’s Health. By January 2023, the number increased to 11.

During his time as governor since 2018, Murphy has helped send $45 million in federal and state funding to various NJHVIP sites. In August 2023, the NJHVIP’s third year of operation, $15 million was earmarked for violence prevention services through the use of the same cannabis fund, including guidance for at-risk youth as well as street intervention services. “For far too long, pockets of our state have been scarred by violence. And, since day one of our Administration, we have been committed to solving this problem,” Murphy said last month. “Through initiatives such as the [CBVI] Programs, we have made great strides on that pledge. I am incredibly grateful for Attorney General Platkin and his team’s steadfast dedication to reducing violence in our state and creating a safer community for all.”

The $5.5 million from the cannabis tax fund for this year will be granted starting in 2024. Organizations that seek to apply for NJHVIP grants can do so by Oct. 18, 2023. According to the Notice of Availability of Funds, applicants may apply for no more than $995,000 per project. A webinar was held on Sept. 29 for interested applicants, but those who did not originally attend on that day can check out a recording of the meeting when it’s published online on Oct. 3.

In news of other community services, three New Jersey attorneys (Andrew Cooper, Michael Hoffman, and John Williams) recently held an expungement service event at the 420 Expo, which was held between Sept. 29-Oct. 1. The “stigma-free celebration of the legal cannabis lifestyle” was host to more than 100 vendors, and also included educational seminars and appearances from celebrity Cheech Marin. “The so-called war on drugs has been particularly hard on minority and low-income communities, and although studies show white, brown, and Black people use cannabis equally, Black and brown people were nearly four times as likely to be arrested for cannabis violations,” Cooper explained. “Despite laws designed to assist these communities, the individuals affected most are also least able to benefit due to a lack of access to information and support. The Expungement Clinics at 420 Expo are intended to provide the kind of meaningful access to information otherwise sorely lacking in society.”

The post New Jersey Cannabis Funds Used for Hospital-Based Intervention Services appeared first on High Times.

The post New Jersey Cannabis Funds Used for Hospital-Based Intervention Services appeared first on Paradise Found.

New Jersey Gov. Phil Murphy and Attorney General Matthew J. Platkin recently revealed an initiative that provides a total of $15 million to support Community-Based Violence Intervention (CBVI) programs, a portion of which comes from a dedicated cannabis tax fund.

According to a press release, Murphy has helped facilitate the use of more than $40 million into CVBI programs since 2021. This year, the initiative will receive $5 million from the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund.

“For far too long, pockets of our state have been scarred by violence. And, since day one of our Administration, we have been committed to solving this problem,” Murphy said in a press statement. “Through initiatives such as the [CBVI] Programs, we have made great strides on that pledge. I am incredibly grateful for Attorney General Platkin and his team’s steadfast dedication to reducing violence in our state and creating a safer community for all.”

CBVI programs include “interventions and protective activities” in areas where violence is most prevalent. “Through this public health approach to interrupt cycles of violence, and with a focus on reducing gun violence, CBVI initiatives include a range of strategies: mentoring programs, street outreach, trauma support services, de-escalation among high-risk individuals, targeted afterschool programs, job training, and more,” a press release stated.

“Keeping New Jersey’s residents safe is my top priority. Our comprehensive approach to public safety focuses support for community-led violence intervention efforts that are disrupting cycles of violence at the ground level,” said Attorney General Platkin. “Thanks to the leadership and support of Gov. Murphy, we are continuing the State’s historic investment and commitment to this essential work. These funds continue to put resources in the hands of grassroots organizations so that communities are part of our public safety mission.”

To receive a portion of available funds (up to $750,000), applicants must demonstrate a history of success in their work with violence intervention. Interested applicants may apply through the Department of Law and Public Safety between now and Sept. 26, for one of two categories. First, “Tertiary Prevention,” which offers services such as “de-escalation or mediation between individuals and groups, high risk individuals, mentorship” and has street outreach teams ready to take action. The second, “Primary or Secondary Prevention,” implements violence prevention strategies for at risk areas with high violence records.

This is currently the third year that the state has provided CBVI funds and has expanded to include 31 community organizations across the state. In 2022, New Jersey’s CBVI program offered up a portion of $20 million to serve violence intervention efforts, and in 2021 the state offered $10 million.

Other states in the U.S. also have dedicated cannabis tax funds to benefit local organizations. In May, the California Governor’s Office of Business and Economic Development (GO-Biz) announced a wave of organizations who applied and were approved to receive a portion of $48 million that was generated by cannabis tax revenue. Organizations such as Centers for Equity and Success, Inc., Shields for Families, the Los Angeles Department of Public Health, UnCommon Law, and the Monterey County Health Department. Other grants including First Place for Youth, Goodwill of the San Francisco Bay, and United Friends of the Children were selected.

In April 2020, GO-Biz began this annual program by offering up $30 million for approved grant recipients. In 2022, the amount increased to $35.5 million, which was given to 58 grant recipients. The state has already begun the application process as of Aug. 14. and a due date of Sept. 18, with the 2024 grants being announced in May 2024. All recipients have three years following these awards to spend the funds.

In June, the California Department of Cannabis Control also announced that $4.1 million will go toward 18 local governments through the Local Jurisdiction Retail Access Grant. The distribution included various cities and counties, such as the city of Riverside and Los Angeles County, to develop individual government cannabis licensing programs (limited only to cities and/or counties that have not opted out of allowing cannabis businesses).

Gov. Murphy signed the state’s adult-use cannabis into law in February 2021 (officially called the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act). Adult-use cannabis sales went live in April 2022, and after one year passed, the state had 24 licensed cannabis businesses in operation (versus the 13 that it began with).

Sales data from Q3 of 2022 recorded more than $100 million in adult-use cannabis sales. “New Jersey is only seeing the beginning of what is possible for cannabis,” said New Jersey Cannabis Regulatory Commission Executive Director Jeff Brown. “We have now awarded 36 annual licenses for recreational cannabis businesses to New Jersey entrepreneurs, including 15 for dispensaries. Those businesses alone will be a significant growth of the market. With more locations and greater competition, we expect the customer base to grow and prices to come down.” 

According to the most recent data published from the New Jersey Cannabis Regulatory Commission, Q1 of 2023 yielded $474, 407,516 in recreational cannabis gross receipts, and $204,731,182 in medical cannabis gross receipts.

The post New Jersey Cannabis Tax Revenue Provides $5 Million to Violence Prevention appeared first on High Times.

The post New Jersey Cannabis Tax Revenue Provides $5 Million to Violence Prevention appeared first on Paradise Found.

According to the most recent monthly report from the Michigan Cannabis Regulatory Agency, Michigan cannabis sales reached a record in July, recording $276 million in sales, with the lion’s share of sales coming from adult-use cannabis. Local cannabis businesses say they aren’t making much in profits, however.

The state will likely surpass the $3 billion mark in revenue for the first time in 2023. It reinforces the importance of the state’s cannabis market. If the trend continues, Michigan will become the second largest market in the nation after California. 

But insiders say making a profit in this industry is an entirely different scenario, nearly impossible for businesses following the rules. In addition, the constant flow of new licenses is increasing competition to unworkable levels.

“It’s kind of a race to the bottom, as they call it,” Beau Whitney, senior economist for the National Cannabis Industry Association, told Bridge Michigan. “Prices are going down, down and down because there’s so much competition, but at some point, prices won’t be able to go down any further.” 

Some locals say the current system won’t work for long under the current circumstances.

“I think that big corporate stores thought they could throw money at this and just keep throwing money at it, and it would work and it’s not working. That’s why most of your major dispensaries … are for sale,” said Jerry Millen, owner of The Greenhouse, a dispensary located in Walled Lake.

The incoming flow of new licenses doesn’t seem to be helping existing businesses much. During the past month, Michigan received 97 applications for adult-use use licenses, and issued 87 new licenses. Seventeen of the licenses were designated for class C growers, with a limit of up to 1,500 plants, per state regulations. 

A 10% excise tax was imposed on retailers in addition to a 6% sales tax after adult-use was legalized in Michigan in 2018. Thanks to high production costs and oversaturation of the market, consumers are happy but businesses are not. 

That average price of $99 for one ounce of adult-use cannabis is much cheaper than it was this time last year. The price for an ounce of medical cannabis is only slightly higher. 

A Boon for the Michigan Economy

While small businesses aren’t likely making much profit, local governments, however, are loving it. Tens of millions of dollars in revenue are being allocated to local governments across Michigan as a result of the state’s adult-use cannabis industry. 

According to FOX 2 Detroit, “Only 30% of total adult-use sales go to local governments, with the other 70% going to schools and roads. When contributions from last year are paired next to figures from 2021 and 2020, they show an industry that shows no signs of slowing down.”

Michigan voters legalized adult-use cannabis in 2018, when they approved Proposal 1, which made it legal for adults 21 and older to consume cannabis, and paved the way for a regulated cannabis market that launched in 2019. 

But despite strong sales numbers, Michigan, like other regulated cannabis markets, has become oversupplied with pot.

Illegal cannabis sales continue to thrive in the state, and Michigan regulators are taking action. Last October, The Detroit News reported that Brian Hanna, the acting director of the Michigan Cannabis Regulatory Agency, told assembled media that “the agency is planning actions that will expose bad actors and serve as a warning to other regulated businesses.”

The post Michigan Cannabis Sales Hit Record High, Profits Another Story appeared first on High Times.

The post Michigan Cannabis Sales Hit Record High, Profits Another Story appeared first on Paradise Found.