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.
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 ($)|
|District of Columbia||26,605,996|