For states that have passed legislation to legalize adult-use recreational marijuana, tax revenues from such sales are soaring. According to data from the Marijuana Policy Project (MPP), a legalization advocacy group, as of December 2021, states that have legalized recreational marijuana have reported a combined total of $10.4 billion in tax revenue. Additionally, cities and towns have acquired hundreds of thousands of dollars in tax revenue from the sale of recreational marijuana.
In the report’s press release, MPP’s Director of State Policies stated, “States that have legalized cannabis for adults are reaping significant economic benefits. The legal adult-use cannabis industry has now generated over $10 billion in new tax revenue, and in many instances that revenue is being distributed to much needed public services and programs, including reinvesting in communities that were devastated by the war on drugs. This is in stark contrast to prohibition, which costs taxpayers billions of dollars each year to enforce.”
Much Needed Funding
For states that have legalized recreational marijuana, tax revenues go to support a variety of social services and programs, including education, school construction, literacy programs, libraries, bullying prevention programs, mental health programs, substance abuse treatment programs, veterans’ services, job training, and more.
Growing Tax Revenues
States that have legalized adult-use marijuana have reported year-over-year increases in marijuana sales tax revenues, which is welcome news for programs and services that are in dire need of increased funding and support.