Cannabis sales generated more revenue for Colorado and Washington State in the fiscal year 2022 than sales of alcohol or cigarettes. In eight more states, marijuana tax revenue outpaced that of cigarettes, while in Nevada, it outpaced that of alcoholic beverages. The paper, issued last Wednesday by the Tax Policy Center, provides a complete analysis of the various tax models, revenue data, and discussions of the most beneficial tax arrangements in states that have legalized cannabis.
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