California sees a 55% gain in cannabis tax revenue from 2020 to 2021
It is well known that California is the quintessential marijuana state and the revenue numbers back it up. According to estimates from state officials earlier this week, the Golden State was able to raise about $817 million in adult-use marijuana tax revenue during the 2020-21 fiscal year. This represents a 55% increase in cannabis revenues earned in the previous fiscal year, setting a new record.
The Legislative Analyst’s Office stated that revenues for the fourth quarter (ending in June) from combined cultivation and excise taxes totaled more than $210 million, which is similar to the first quarter of the fiscal year for the most dollars collected in any three-month period after marijuana sales became legal. This new revenue record, which left more than a few mouths agape, does not include the additional regular sales taxes generated from cannabis, nor does it add local revenues to the municipalities where the transactions take place.
Many people did not expect this trend to continue to occur in the midst of a global pandemic, as many cannabis-related businesses were forced to close their operations and unemployment was a major factor. In addition to this, the marijuana market, both in California and the rest of the country, has managed to keep up a good pace, even when cannabis companies do not have federal support, something that sets it apart from traditional industries.
The figure initially mentioned is expected to be even higher, as it is only a preliminary count of the state’s cannabis revenues. Sometimes it happens that different companies file their returns a little late and the quarterly totals are adjusted upward.