The state’s cannabis market has broken the $3B barrier
State coffers are becoming increasingly flush with tax revenue from adult-use marijuana sales in Massachusetts. In May of last year, sales from this lucrative market in the Bay State were able to surpass the $3 billion mark. Experts indicate that the next few weeks could be evidence of surpassing the $4 billion mark.
According to a report shared by the Massachusetts Cannabis Control Commission on December 18, the state saw so far $1.42 billion in adult-use marijuana sales in 2022 for residents 21 and older. During that same period, the medical cannabis sector saw sales in excess of $260 million.
The recreational marijuana market is taxed at 6.25%, so the state was able to record $88.75 million in tax revenue generated through the middle of last month. Another $152.65 million was generated from the state’s 10.75% excise tax. As if that were not enough, it is indicated that potentially as much as $42.6 million could have been generated through local use option taxes of 3%. It should be noted that medical cannabis sales do not fall under any tax, as long as the patient uses his or her card at the time of purchase.
Both markets began operations on November 5, 20158 and since then, Massachusetts has witnessed a grand total of $3.9 billion in sales as of December 18. As a result, analysts believe the $4 billion mark is about to be surpassed.
Massachusetts had been an oasis for adult-use marijuana in New England. However, both Vermont and Connecticut gave cannabis the go-ahead in 2021, while Rhode Island legalized it last summer.