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This Is How Much Each State May Make on Marijuana

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 ($)
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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