Since adult-use cannabis passed in Missouri in 2022, the state recently divided $15 million in adult-use sales revenue to fund support services for military veterans and substance abuse treatment programs, as well as the Missouri Public Defenders budget. That amount is projected to increase to $19 million by the time the fiscal year ends on July 1.

Division of Cannabis Regulation (DCR) director Amy Moore recently said that she was pleased with the fund accumulation so far. “It is so rewarding to see the impact of this voter-approved program on organizations that provide vital services to Missourians. We look forward to watching this impact grow and are grateful to be a part of it.” Moore said.

The collection of medical and adult-use cannabis revenue in Missouri differs slightly once operational costs have been paid. The constitutional amendment that legalized medical cannabis five years ago goes directly to the MVC, whereas adult-use cannabis revenue must first pay out any fees relating to cannabis offense expungement, and the leftover amounts are divided up among the three beneficiaries.

These three groups include the Missouri Veterans Commission (MVC), Missouri State Public Defender, and the Missouri Department of Health and Senior Services (DHSS). The MVC is described as a health care and “other services” group that serves both veterans as well as their families, while the Public Defender is a legal option for low-income Missourians. The DHSS’s goal is “to operate a grant program for subrecipients to increase access to evidence-based, low-barrier drug addiction treatment prioritizing medically proven treatment and overdose prevention and reversal methods and public or private treatment options with an emphasis on reintegrating recipients into their local communities, to support overdose prevention education, and to support job placement, housing, and counseling for those with substance use disorders.” This includes maintenance of veterans’ homes and various cemeteries. 

The most recent transfer to these groups on May 17 included a total of $15,229,302 split three ways, with each beneficiary receiving $5,076,434.

In January 2024, Moore gave a presentation in front of the House Veterans Committee showing that the MVC will receive a total of $19 million from cannabis sales revenue by the time that the fiscal year ends on July 1. Furthermore, Moore estimated that next year that amount will increase to approximately $22 million. “The governor’s recommendation is quite a bit more than expected and that is tied to the unexpectedly robust sales, mostly on the adult-use side,” Moore said. 

At the time, Moore’s data showed that Missouri had collected $98,873,147 in medical cannabis revenue ($41,406,336 of which went to DCR operating expenses and $39,978,820 to veterans). The state had also collected a total of $57,743,824 in adult-use revenue so far (split between $8,152,210 for DCR operating expenses, in addition to the three sets of beneficiaries receiving $1,278,973).

The MVC has received a grand total of $39,978,820 in medical cannabis sales revenue funds since the transfer began in September 2020. During that first year, the MVC received $2,135,510, followed by $6,843,310 in September 2021, $5 million in May 2022, $13 million in September 2022, and finally $13 million in October 2023.

Rep. Dave Griffith, who is also the veterans chair committee, commented on the success of legalization so far. “The amount of sales that they’ve had with commercial marijuana has been just record-breaking and exceeded all expectations and projections,” Griffith said. “Because of that, there’s going to be even more money into that pool than what they projected right after [Amendment 3] passed.” Griffith also commented that his goal is to increase the amount of funds given to the MVC to $50 million annually, citing the need for more money to better serve veterans services. “Many of them, they’re so overburdened with their caseloads that it’s hard to get in with them,” said Griffith. “If we can increase the number we have, we can start trying to cut down on that wait time many veterans have.”

During the most recent round of funds transferred, Moore released a statement in October 2023 about the positive growth coming from the adult-use cannabis market. “It is incredible that Missouri voters passed the adult use amendment less than one year ago, and we are now starting to see the financial impact the program’s success will have on multiple organizations and the Missourians they serve,” Moore said.

At the time, MVC executive director Paul Kirchoff also provided a statement about the benefits of the program. “These funds will help MVC continue to support the existing infrastructure of our seven Veterans Homes,” said Kirchoff.

While legal cannabis continues to serve Missouri, the topic of psilocybin continues to evolve. In March, the Missouri House Veterans Committee recently passed a psilocybin legalization bill (Senate Bill 768) which if passed would allow veterans to use psilocybin therapy. 

In April, the Missouri House of Representatives approved a budget bill that sets aside $10 million in psilocybin research grants, which would come from the state opioid settlement funds. The research studies would study how psilocybin affects people with opioid abuse disorder.

Originally this also included the research of ibogaine for treating the disorder but was changed to focus on psilocybin instead. According to Rep. Cody Smith who introduced that budget bill, the switch from ibogaine to psilocybin was due to a discussion he had with the Department of Mental Health the week prior. “They had concerns about the ibogaine research they had read, and there are concerns about the dangers involved in that research,” said Smith. “However, they are interested in the psilocybin piece. And we’ve seen many other states use their opioid settlement funds to that end.”

The post Missouri Cannabis Revenue Funds $15 Million to Three Primary Beneficiaries first appeared on High Times.

The post Missouri Cannabis Revenue Funds $15 Million to Three Primary Beneficiaries appeared first on Paradise Found.

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.

Regulated sales of marijuana in Arizona topped $1.4 billion last year, according to state data, marking the third year in a row that licensed weed sales have exceeded $1 billion in the Grand Canyon State. Sales of recreational marijuana totaled more than $1 billion in 2023, while sales of medical cannabis brought in nearly $350 million, the Arizona Mirror reported on Tuesday.

Arizona’s continued strong weed sales were welcome news for the state’s licensed cannabis businesses. Luke Flood, senior vice president and West regional leader for multistate operator Curaleaf, said, “Arizona has been a strong success story for us, and has become one of the top markets in the country for Curaleaf.” 

“Since the launch of adult use, we have seen a lot of consolidation in the market on the retail side, along with a multitude of new third-party brands and products coming into the market, resulting in a wider selection for consumers at an affordable price,” Flood wrote in an emailed statement. “Uniquely, Arizona offers one of the lowest prices per gram at the retail level in the country.”

Adult-Use Sales Dominate the Arizona Market

Adult-use cannabis sales came to $1.1 billion in 2023, according to data from the Arizona Department of Revenue (ADOR), or about 72% of the year’s total sales. The year before, recreational marijuana sales contributed 70% of the yearly total. In 2021, the year adult-use cannabis sales began in Arizona, recreational weed made up only 45% of the state’s total cannabis market.

“Reaching $1.4 billion in sales is a huge milestone for the state and I think it speaks to the wider efforts of de-stigmatization surrounding the plant,” Josh Hirschey, president of Arizona-based concentrate manufacturer Timeless, said in a statement.

“The consumer demand for high-quality cannabis is there and Arizona brands are strategic in navigating natural limitations to normalize the plant,” he added.

Monthly sales of recreational marijuana have totaled between about $80 million and $93.5 million since July 2022, peaking in March 2023 at $100 million. In January, adult-use sales dropped to $76.8 million, the first time in 18 months the figure was below $80 million.

Medical cannabis sales totaled $348 million last year as the market for medicinal weed in Arizona continues to decline. Medical sales hit a monthly sales record of $73.4 million in April 2021 and have steadily decreased nearly every month since then.

The decline in medicinal cannabis sales has coincided with a drop in the number of registered patients in Arizona’s medical marijuana program. Last month, the total number of medical marijuana cardholders was 111,168, down from the peak of 299,054.

Weed Taxes Fund Social Services

Arizona levies a 16% excise tax on adult-use cannabis sales in addition to the usual sales tax. Medical patients pay the sales tax of about 6%, depending on the area. Additionally, local jurisdictions add a tax of about 2% to all weed sales. 

Last year, cannabis excise taxes totaled $172.8 million. Since recreational marijuana sales began in January 2021, the marijuana excise tax has generated $451 million in revenue for the state.

Approximately one-third of Arizona’s marijuana tax revenue is earmarked for community college and provisional community college districts and 31% is dedicated to fire departments, fire districts, law enforcement and other first responders. One-fourth of state cannabis taxes are reserved for the Arizona Highway User Revenue Fund, while 10% is dedicated to the justice reinvestment fund supporting public health services, counseling, job training and other social services for communities that have been disproportionately affected by the War on Drugs.

Although Arizona’s cannabis market has begun to stabilize, many of the state’s weed retailers are still optimistic about this year. Eivan Shahara, CEO of Mint Cannabis, said the business is “anticipating an even busier 2024, as we prepare to employ more people to serve more customers at our additional dispensary locations.”

“The marijuana industry is blossoming into a significant job creator,” Shahara wrote in an email to High Times. “It’s estimated that the cannabis industry employs about 500,000 full-time equivalent positions in the U.S., with about 280 new jobs being added daily. This showcases a promising trend, as more than 100,000 new jobs were established in the previous year, making the cannabis industry one of America’s fastest-growing job sectors.”

The post Arizona Weed Sales Topped $1.4 Billion Last Year appeared first on High Times.

The post Arizona Weed Sales Topped $1.4 Billion Last Year appeared first on Paradise Found.

Ohio’s progress on cannabis has come to a temporary halt after House legislators fail to move the bill forward.

Last week Ohio House Speaker Jason Stephens spoke to reporters, calling cannabis a “complex issue.” Voters approved Issue 2 at the ballot in November 2023, which took effect on Dec. 7, but since it was a citizen initiative, legislators have the power to add changes to the law after it has been approved by voters. Two bills, House Bill 86 and House Bill 354, would implement certain changes to the law established by the voter initiative, but legislators have not moved forward with either of them yet.

House Bill 86 was initially introduced in February 2023, and would implement a few changes to the law established by Issue 2. HB-86 passed in the house between May and June 2023, and was introduced into the Senate in September. The Senate approved changes to the law by December, which includes automatic expungements and funding for the program, establishing a grace period for medical cannabis dispensaries to sell adult-use cannabis for 90 days after Dec. 7 (instead of nine months), expanding license eligibility, and funding the 988 suicide hotline. “In spite of the initial bills proposed by the House and Senate majorities which reduced the provisions in Issue 2 adopted by the people of Ohio, the Senate Democratic minority held the line and successfully negotiated a compromise bill that would salvage the voice of the people,” said Sen. Vernon Sykes in a press release in December.

The Senate changes were sent to the House, which made no action to further the bill as of the session on Feb. 7.

Despite any current or future changes, Issue 2 will still proceed as planned though. “Issue 2 puts in place a full regulatory framework … We don’t need the legislature to do anything,” explained Tom Haren, the spokesperson for the group behind Issue 2, Coalition to Regulate Marijuana Like Alcohol.

Issue 2 also called for the creation of the Division of Cannabis Control (DCC) as part of the Ohio Department of Commerce, which will oversee the development of rules to regulate adult-use cannabis sales. According to the Ohio Capital Journal, the DCC is expected to have those rules in place by June 7. Provisional licenses will be given to non-medical cannabis facilities by Sept. 7, according to an email statement provided to the new outlet by Ohio Department of Commerce Public Information Officer Jamie Crawford. 

The complexity that Stephens cited is due to two factors: first, setting up the process in how to determine who gets a dispensary license, and second, how to tackle tax revenue. “That’s where we are in our discussions and our priority right now is having those thorough discussions as there was a long runway for this issue, so we still have some time to do that,” said Stephens.

When HB-86 was first introduced, the text focused on altering state liquor laws and not cannabis. If the bill’s changes were to be passed, it would establish a cannabis tax rate increase of 15% (Issue 2 set the tax rate at 10%). It would also allow city and county governments the ability establish their own additional taxes on top of a 3% excise tax. Home growing would be permitted for residents (up to six plants), and automatic expungements would be pursued for anyone who possessed 2.5 ounces of cannabis or less. If the bill makes it to Ohio Gov. Mike DeWine’s desk, all of these changes and more would take effect 90 days after the signing occurs.

Additionally, HB-86 would distribute revenue funds to a variety of outlets, including county jail construction (28%), Department of Public Safety law enforcement training (19%), Attorney General law enforcement training (14%), substance abuse and treatment funds (11%), the 988 Suicide & Crisis Lifeline fund (9%), cannabis receipts drug law enforcement fund (5%), cannabis expungements fund (5%), safe driver training fund (5%), Ohio Investigative Unit Operations fund (4%), Division of Marijuana Control Operations fund (3%), and cannabis poison control fund (2%).

While progress has ceased for now, some legislators are hopeful to see traction when the House resumes action on April 10. I think that everyone agrees that there are certain aspects of this legislation that weren’t adequately addressed in Issue 2, and we’ve talked about many different components,” said House Minority Leader Allison Russo. “I think there’s a lot of agreement on some things and then still many discussions that need to be had about other aspects.”

Haren is also confident that progress will be made in just a few months. “It’s been unfortunate to see some members of the General Assembly so quickly try to subvert the will of the voters through House Bill 86, for instance,” said Haren. “But I’m encouraged the House is obviously taking a much more deliberate approach.”

Separately, House Bill 354 was introduced last December as well, which aims to clarify Issue 2’s current language. While home cultivation would still be allowed, HB-354 specifies that growing must take place at a person’s home residence. It would also change the percentages of which agencies that cannabis tax revenue would be given to, including a community cannabis fund (36%), social equity fund and job fund (36%), substance abuse through the 988 Suicide & Crisis Lifeline fund (12.5%), additional substance abuse and addiction funds (10%), the Division of Marijuana Control and Department of Taxation (3%), and the Department of Mental Health and Addiction Services (2.5%).

The post Ohio Legislators Still Working To Implement Changes to Adult-Use Cannabis Law appeared first on High Times.

The post Ohio Legislators Still Working To Implement Changes to Adult-Use Cannabis Law appeared first on Paradise Found.

Sales of cannabis in Arizona have exceeded $1 billion this year, according to data from the state Department of Revenue. Total marijuana sales eclipsed the billion-dollar mark in September, marking the third straight year the state’s weed sales have reached the seven-digit milestone. 

So far this year, Arizona’s sales of adult-use cannabis have totaled $797 million, while medical marijuana sales reached $267 million, bringing the total for 2023 through September to $1.1 billion. The state’s overall cannabis volume since recreational marijuana sales began in January 2021 has now reached $4 billion, with sales of adult-use cannabis contributing $2.5 billion to the total.

Arizona voters legalized the medical use of marijuana in Arizona in 2010 with the approval of Proposition 203, which received just over half of the vote. The first licensed medical marijuana dispensary in the state began serving patients on December 6, 2012. 

Recreational marijuana was then legalized in the state with the passage of Proposition 207 in 2020. Known as the Smart and Safe Act, the ballot measure was approved by 60% of voters. Regulated sales of recreational marijuana began on January 21, 2021, less than three months after the ballot measure succeeded at the polls.

Arizona Department of Revenue (ADOR) cannabis sales data from August and September of this year show that medical marijuana accounted for about one-third of the state’s total sales, according to a report from the Arizona Mirror. The ratio of medical marijuana sales to sales of adult-use cannabis continues a trend the state has seen over the last year, leading to the lowest total recorded sales of medical marijuana ever.

Sales of medical marijuana in September were just under $27 million, down from $28.7 million the previous month. September’s figure marks the lowest monthly total for medical cannabis sales since regulated sales of adult-use cannabis began nearly three years ago. The last time monthly medical marijuana sales topped $30 million was in June. Medical marijuana sales have steadily declined in Arizona since the peak of $73.4 million in April 2021. Total medical weed sales have not exceeded $40 million in a single month since June.

Sales of adult-use cannabis totaled $85.8 million in August and just over $80 million in September. Recreational cannabis sales hit their highest monthly total in March of this year at $100 million. Sales of recreational pot have exceeded $80 million per month since dropping below $90 million in May. Since first reaching $80 million in March 2022, sales of adult-use cannabis have only failed to reach that level twice—in May 2022 at $79.3 million and June 2022 at $77.2 million.

Eivan Shahara, the CEO of Mint Cannabis, a multistate operator that opened its sixth dispensary in Arizona last week, says that the state’s dip in cannabis sales coincided with changes in the way consumers are shopping.

“In terms of consumer spending, we’re seeing cannabis customers visit our dispensaries more frequently with smaller basket sizes. During the pandemic, we saw customers visit less frequently but with larger basket sizes,” Shahara writes in an email to High Times. “We’re responding to this trend by continuing to offer day-of-the-week deals, stock up and save promotions, giveaways, and buy-one-get-one offers to drive additional traffic and sales at our locations. We have also responded by incorporating more conveniences like online ordering and drive-thru pick up.”

Weed Taxes Generate Millions

Arizona levies a 16% tax on recreational marijuana sales in addition to approximately 6% in sales tax. Medical marijuana patients pay only sales tax on their purchases of cannabis. Local jurisdictions add additional taxes of about 2% to recreational marijuana sales.

About a third of cannabis tax revenue collected in Arizona is dedicated to community college and provisional community college districts, while 31% is dedicated to law enforcement, fire departments, fire districts and other emergency first responders. A quarter of state marijuana taxes go to the Arizona Highway User Revenue Fund, while 10% is reserved for the justice reinvestment fund, which supports public health services, counseling, job training and other social services for communities that have been adversely affected and disproportionately impacted by nearly a century of cannabis prohibition.

So far for 2023, the state has collected $174.5 million in excise taxes on recreational marijuana. During the 11 months of regulated sales in 2021, taxes on adult-use cannabis generated $32.9 million for the state’s coffers. The total spiked the following year, with the excise tax on recreational weed jumping to $132.8 million. Overall, the excise tax has generated more than $391 million in revenue for Arizona since regulated sales of adult-use cannabis began.

Arizona collected $13.7 million in August and $12.8 million in September from taxes on recreational marijuana sales. So far in 2023, the excise tax on adult-use cannabis has generated $174.5 million in revenue. Tax revenue on medical marijuana came to $2.4 million in August and $2.2 million in September.

The post Arizona Weed Sales Exceed $1 Billion in 2023 appeared first on High Times.

The post Arizona Weed Sales Exceed $1 Billion in 2023 appeared first on Paradise Found.

St. Louis city officials announced this week that a failure to meet a state deadline has resulted in a delay in the start of a new cannabis sales tax that will cost the city an estimated $500,000 in lost revenue. St. Louis voters approved the 3% cannabis sales tax in April following the statewide legalization of weed in the November 2022 election.

Under Missouri’s marijuana legalization statute, local governments are permitted to add a cannabis sales tax on top of the state’s 6% pot sales tax. Earlier this year, St. Louis city officials put a 3% cannabis tax measure on the ballot, saying that the money would be used to address historic inequalities in the city. Former city Alderman Brandon Bosley, the sponsor of the cannabis tax proposal, said at the time that he hoped the money would be used for programs to help keep at-risk young people out of trouble.

St. Louis voters approved the tax in an April election, giving the city the authority to collect the new cannabis tax. But before that could happen, the city was supposed to submit information including certified election results and a notification to the Missouri Department of Revenue that the tax would be levied. State law dictates that the new tax can be collected beginning on the first day of the second quarter after such notification is made.

If the notification had been made by the end of June, the city could have begun collecting the tax on October 1. Last week, an employee in the city finance department told the mayor’s office that the required notifications to enact the new weed tax had not been sent to the state.

“We’re grateful that they told us because we had no idea,” city spokesman Nick Dunne said in a statement to the St. Louis Post Dispatch.

Oversight Corrected Last Week

Dunne said that St. Louis Mayor Tishaura O. Jones and Casey Millburg, her policy director, worked swiftly to resolve the issue after it came to light. The required paperwork was filed with the state Department of Revenue on November 14 and the city received word that everything was in order the following day. City officials also secured a waiver from the state allowing the tax to be collected beginning in January, rather than in April as prescribed by law.

Because of the error, St. Louis is missing out on the cannabis sales taxes that could have been generated between October 1 and the end of the year. Dunne did not estimate how much revenue could have been collected from the tax during that time. But in May, city Budget Director Paul Payne told the Board of Aldermen that if statewide recreational sales are about $1 billion per year as estimated and the city receives the same share in taxes as it does with other consumer spending, the city’s annual weed tax revenue would be about $2.4 million per year, or an estimated $600,000 per quarter. If the city’s share of the regulated cannabis market is equal to its share of the dispensaries that have opened in Missouri so far, annual revenue would be roughly $2 million annually or approximately $500,000 per quarter.

“Clearly, this is an oversight that even we weren’t thrilled with,” Dunne said.

What’s not clear, however, is which city department is responsible for making the notification to the state to begin collecting the tax. Recently, such submissions have been completed by the mayor’s office. But Dunne noted that the city comptroller’s office and the Board of Elections have also taken care of such submissions in the past. After the oversight was revealed, Jones’ office issued a statement on the city’s failure.

“While state law does not specifically define who is responsible for submitting the required documents to the Department of Revenue, the bottom line is that St. Louis will be precluded from collecting the additional 3% sales tax on cannabis products,” the statement reads. “That is unacceptable.”

“We are looking at what we can do to more clearly define lines of responsibility,” Dunne told reporters.

The shortfall of at least $500,000 is not an enormous portion of the city’s billion-dollar yearly budget. But Alderwoman Cara Spencer, the chair of the Board of Aldermen’s budget committee, said the amount is not insignificant, noting that the amount could pay for a proposed freeze on property taxes for seniors for a year.

“It’s really disappointing,” Spencer said. “We need every dollar we can get.”

“Frustrated is an understatement,” she added. “We just came through a very tough budget cycle. We’re looking at some very stark figures here.”

The post St. Louis Fails To Collect $500,000 in Pot Taxes appeared first on High Times.

The post St. Louis Fails To Collect $500,000 in Pot Taxes appeared first on Paradise Found.

Following the introduction of Senate Bill 486, a cannabis legalization bill first introduced two months ago, the Wisconsin Department of Revenue released a fiscal report of the impact of legalization.

So far, SB 486 has received one Senate reading on Oct. 9, two additional cosponsors, and a fiscal estimate first published on Oct. 25.

Wisconsin has no data to build off of any existing cannabis industry but it used data from neighboring states of Michigan, Illinois, and Minnesota to get a better idea of the effects and potential benefits of legalization. “All three states generate revenues through a variety of permits/licensing fees and excise taxes on retail sales (medical exempted), in addition Illinois imposes an excise tax on sales by growers to retailers,” the report stated. “Minnesota which legalized marijuana this year offers no historical data to estimate sales and tax revenues.”

The report stated that a 15% excise tax revenue in Wisconsin could generate up to $24.6 million in the first year, followed by $48.6 million in the second year, and $60.1 million in the third year. Additionally, a 10% excise tax on cannabis retailers could net up to $19.1 million in the first year, $47.3 million in the second year, and $64.9 million in the third year.

A 5% state general sales tax on cannabis would also show a collection of $9.5 million in the first year, $23.6 million in the second year, and finally $41.7 million in the third year.

Wisconsin also lumps together county tax estimates, along with a “stadium tax,” or baseball stadium tax for the counties of Milwaukee, Ozaukee, Racine, Washington, and Waukesha. Together, this 9.6% state sales could collect up to $0.9 million in the first year, $2.3 million in the second year, and $3.1 million in the third year. Additionally, the report mentions Milwaukee-specific sales tax of 2.5%, for $0.2 million in the first year, $0.6 million for the second, and $0.8 million for the third.

Rough totals per year include $54.3 million for the first year, $122.8 for the second year, and $170.5 million for the third year.

The fees include administrative and staffing requirements, which would cost $4 million to implement, and an additional $4.5 million for expanding staff later on.

The legalization effort was launched by Sen. Leader Melissa Agard and Rep. Darrin B. Madison, Agard announced SB 486 in September. “I’ve said this time and time again, we know that the most dangerous thing about cannabis in Wisconsin is that it remains illegal.” Agard said in a press statement. “For the past decade, I have worked to undo Wisconsin’s antiquated and deeply unjust marijuana policies and put our state on a prosperous path forward.”

SB 486 would legalize possession of cannabis for residents over 21 years of age, and establish a regulatory foundation for cultivation, production, and sales.

Agard noted that people in Wisconsin are traveling to other local states to get access to cannabis products. “Right now, we are seeing our hard-earned money go across the border to Illinois, Michigan, and Minnesota to the tune of tens of millions of dollars each year,” Agard said. “That is money we could be reinvesting to help support our friends and neighbors and make our state a place where people want to live, work, and play.”

Madison also said in a statement that it is the right of citizens to be able to purchase and consume cannabis safely without fear of criminalization. “According to the ACLU, Black people were 4.24 times more likely to be arrested than white people in Wisconsin during 2018,” Madison said. “Similar disparities exist in convictions, leading to immeasurable harm to black communities in Wisconsin. The bill we’ve introduced today lays a solid foundation for those that have been harshly convicted for non-violent possession charges and the ramifications of those convictions.” 

Earlier this year in March, a report showed that the state of Illinois has collected $36.1 million in tax revenue from Wisconsin residents crossing state lines to purchase cannabis legally. “It should upset every Wisconsinite that our hard earned tax dollars are going across the border to Illinois,” Agard stated. “This is revenue that could be going toward Wisconsin’s public schools, transportation infrastructure, and public safety. Instead, Illinois is reaping the benefits of Republican obstructionism and their prohibitionist stance on marijuana legalization.”

Later in August, Agard congratulated the state of Minnesota on the launch of legal cannabis sales, and called for the same to happen in Wisconsin soon as well. “Wisconsin is an island of prohibition. Now, approximately 700 miles of Wisconsin land borders a state with legal cannabis,” Agard said. “Choosing to ignore this issue, as my Republican colleagues continue to do, is not a winning position.”

Wisconsin is making progress, but it’s not likely that SB 486 will pass due to strong opposition from legislators. But those individuals’ opinions don’t match that of Wisconsinites, with 64% of registered voters supporting legalization, according to a November 2022 poll. In those results, 82% of Democrats said they supported legalization, along with 75% of independents, but only 43% of Republicans. In order for SB 486 to proceed, it must be approved by the legislature, which currently consists of a Republican majority.

The post New Wisconsin Report Shares Cannabis Revenue Estimates appeared first on High Times.

The post New Wisconsin Report Shares Cannabis Revenue Estimates 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 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.

Ohio just approved a statewide vote on adult-use cannabis on November’s upcoming ballot, and it’s looking like business would be booming should it be approved.

A study published earlier this month by researchers at Ohio State University suggests that Ohio could generate between $275 million and $403 million by the fifth year of operations in adult-use tax revenue, should voters move to legalize.

Establishing a Baseline

The study, titled “What Tax Revenues Should Ohioans Expect If Ohio Legalizes Adult-Use Cannabis,” used cannabis tax data from Michigan fiscal year 2021 as the main point of reference to estimate Ohio’s potential cannabis tax revenue gains, as the two states share “demographic and tax structure similarities.” 

Because Ohio does not have an established adult-use industry or tax structure, all tax revenue projections are speculative and based on variables and assumptions that could shift, researchers prefaced, calling them “best-guess” projections.

It also used data from Illinois, given its proximity to Ohio and similar population size, along with Nevada, Oregon, Washington and Colorado, “selected to provide tax revenue trends from more mature cannabis markets.”

The researchers issued their first report estimating possible tax revenues for the state in Spring 2022 and said they wanted to revisit the report given the recent ballot news. 

Researchers used Michigan as a base for cannabis pricing as well. In 2021, Ohio medical dispensaries charged an average of 40% or more than Michigan dispensaries, increasing to over 120% price differential in 2022 largely because of falling Michigan prices.

Projections for Ohio’s Budding Recreational Market

“Consequently, we have thus prepared a set of tax revenue estimates assuming price parity, as well as assuming 10% and 20% higher prices relative to Michigan to account for different possible Ohio pricing scenarios following legalization,” the report notes.

Given the baselines, researchers used Michigan data and applied a conservative rate of diminishing retail sales under three models to establish their $275 million and $403 million range. 

They also noted that the estimates don’t include collections if additional local sales don’t include any collection of additional local sales taxes or any other taxes that cannabis businesses and employees may pay, like state Commercial Activity Tax, local property taxes or state and local income taxes. It also doesn’t include fees collected from cannabis business license applicants or license holders, which can be structured in a way to provide additional significant benefits to Ohio’s expected cannabis revenue.

Authors also note that, regardless of the final tax structure, cannabis tax revenue only makes up a small proportion of the overall state revenue collection in legalization states. They cite that more mature cannabis markets have seen a tax revenue proportion from cannabis markets hovering between 1-2% of the total state revenue.

“Whatever tax structure is adopted, our analysis suggests it is reasonable to predict that Ohio would collect hundreds of millions in annual cannabis tax revenues from a mature adult-use cannabis market,” the study concludes. “But the amount of tax revenue collected would likely still represent a small percentage of Ohio’s $60+ billion annual budget.”

Voters, Advocates Prepare for 2023 Vote

Last week, advocacy group Coalition to Regulation Marijuana Like Alcohol (CRMA) approved their adult-use cannabis initiative, which would legalize cultivation, manufacturing, testing and sales for people over 21. Prospects are promising, as a recent poll conducted by Suffolk University found that 59% of voters support legalizing cannabis possession and sales.

Ohio voters recently rejected Issue 1, which was a constitutional change proposal that would have made it more difficult to enact constitutional amendments. Experts predict Issue 1’s failure will result in increased voter turnout, especially surrounding a proposed ballot measure around abortion rights heading to the polls.

CRMA spokesperson Tom Haren suggested the potential for a higher turnout could work to the cannabis initiative’s favor.

“I think people who go out to vote in November are likely to support us no matter what they vote on the abortion amendment,” said Haren. “I think we will be popular among those who vote yes (on the abortion rights amendment) and we’re going to be popular among those who vote no (on the abortion rights amendment) as well.”

The post Ohio Rec MJ Market Could Generate $275-403M in Taxes in First Five Years appeared first on High Times.

The post Ohio Rec MJ Market Could Generate $275-403M in Taxes in First Five Years appeared first on Paradise Found.