This Is How Much Each State May Make on Marijuana

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Published: May 24, 2021 8:05 am

Marijuana sales are not yet legal in every state. At a federal level, the sale and use of cannabis are illegal. However, most states have legalized both recreational and medical marijuana as a means to make tax dollars. Many experts believe a change in federal law is just around the corner.
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The Tax Foundation looked at the current and near-term revenue from taxes on cannabis by state. It points out that most states have two levels of taxes: an excise tax and a sales tax. In a recent analysis, the Tax Foundation points out:

A crucial element of legalizing recreational marijuana is tax design. Most states that currently allow and tax sales have opted for a price-based (ad valorem) excise tax. Taxing based on price means there is a taxable event with a transaction, allowing for simple valuation.

A new projection by the foundation forecasts taxes by state for cannabis sales. The list is based on states that have raised taxes via this means for at least three years. It shows “potential” revenue for fiscal 2020 and actual revenue for the current year.

These are the states making the most on cannabis sales:

State	Potential Revenue ($)
California	1,086,253,401
Florida	448,740,070
New York	431,141,823
Texas	397,424,206
Michigan	288,183,493
Washington	285,674,135
Illinois	277,576,356
Pennsylvania	244,553,615
Colorado	230,239,177
Ohio	220,827,478
Massachusetts	214,347,227
Georgia	198,400,771
Arizona	183,169,705
North Carolina	182,947,622
Oregon	182,845,089
New Jersey	158,974,353
Indiana	157,009,061
Virginia	139,977,848
Maryland	135,837,117
Tennessee	132,509,552
Minnesota	122,072,389
Missouri	119,222,374
Wisconsin	117,791,078
Nevada	106,255,348
Connecticut	97,696,550
South Carolina	96,680,914
Alabama	92,217,856
Kentucky	83,008,154
Louisiana	81,616,779
Oklahoma	67,680,000
New Mexico	61,692,434
Arkansas	59,314,764
Maine	50,685,850
Iowa	50,183,462
Mississippi	47,304,242
Utah	44,428,908
New Hampshire	44,163,575
Kansas	42,058,743
West Virginia	38,327,540
Nebraska	35,975,930
Rhode Island	35,455,500
Montana	35,142,502
Idaho	33,295,445
Hawaii	28,453,985
Alaska	28,258,632
Vermont	27,313,974
District of Columbia	26,605,996
Delaware	24,566,974
South Dakota	14,270,281
North Dakota	13,231,599
Wyoming	10,054,045

Click here to see the 15 states where marijuana use is legal.

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