Federal Census Bureau Updates Marijuana Tax Revenue Map, Showing Which States Had Biggest Increases And Decreases Last Quarter

Marijuana Tax Revenue

Federal Census Bureau Updates Tax Map, Showing Which Had Biggest Increases And Decreases Last QuarterPublished on March 25, 2024By Ben Adlin

Since the U.S. Census Bureau first launched a map detailing the proportion of made up by marijuana tax money last fall, the agency has continued tracking the data, allowing further comparisons to be made over time. Additionally, in the fourth quarter of , New York recorded about $14.8 million in excise tax on marijuana sales, reflecting a significant increase of 49% compared to the preceding quarter—a clear sign of the expanding market. In contrast, Colorado witnessed a 9.05% decrease in marijuana tax revenue, highlighting the dynamics of a maturing market.

Understanding State-by-State Dynamics

Connecticut demonstrated remarkable , with tax revenue surging by over 150% between recent quarters. Conversely, Rhode Island and Washington, , observed declines exceeding 44%. It’s crucial to consider how individual state reporting practices may influence quarter-to-quarter comparisons.

Analyzing Proportions

In terms of overall state tax revenue, Washington State, Alaska, Colorado, and led with the largest shares attributed to cannabis sales. Conversely, states like Rhode Island, , and New York had minimal proportions derived from cannabis taxes.

Long-Term Trends and Projections

Data from the third quarter of fiscal year 2021 to the fourth quarter of 2023 illustrate a growing trend in marijuana tax revenue. Despite comprising a fraction of overall state tax revenues, the billions generated underscore the substantial contribution of the cannabis industry. Projections suggest a significant uptick, with legal cannabis sales estimated to reach $37 billion by 2027.

Conclusion

The Federal Census Bureau’s efforts to track and report on marijuana tax revenue signify a monumental shift in federal acknowledgment of the economic impact of state-level . This comprehensive endeavor sheds light on the significant role cannabis plays in state economies, despite its federal illegality.

Acknowledgment: We appreciate Ben Adlin’s insightful reporting on this crucial topic, providing valuable insights into the evolving landscape of cannabis taxation in the United States.

Rosemary Puffman
I'm Rosemary, a staunch supporter of cannabis legalization and its potential benefits. My roles as a writer, cannabis entrepreneur, and informed investor allow me to contribute to the evolving narrative around cannabis. Through my writing, I aim to destigmatize and educate, while my business ventures and strategic investments align with my belief in the positive impact of responsible cannabis use.

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