How do states use marijuana tax revenue?

How do states use marijuana tax revenue?

90\% goes to the state government. 15.56\% of the state revenue goes to the general fund. 12.59\% goes to the state public school fund. 71.85\% goes to the marijuana tax cash fund.

How much money do states make from taxing marijuana?

Last year alone, the adult-use states collected $2.7 billion in taxes from cannabis sales. And as more markets come online and others mature, that’s expected to continue to grow. For example, California took in more than $1 billion in tax revenue from recreational marijuana in 2020—a 62 percent increase from 2019.

How much did Illinois make in marijuana taxes?

Illinois sold about $670 million in marijuana last year and took in $205.4 million in tax revenue.

How much did Illinois make off marijuana sales?

What is Illinois doing with marijuana tax revenue?

Illinois sold about $670 million in marijuana last year and took in $205.4 million in tax revenue. It requires 25 percent of marijuana tax dollars to be put in that fund and used to provide disadvantaged people with services such as legal aid, youth development, community reentry and financial support.

Do dispensaries share information with the government Illinois?

Under Illinois law, no cannabis dispensary can share a consumer’s personal information, unless the consumer authorizes them, to anyone or any entity. This includes the Illinois State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Where does marijuana tax go in Illinois?

Here’s where the money goes. The state’s collections since early 2020 now outpace that raised from booze sales. The money has been used on everything from buying an opioid reversal drug to funding a Girl Scouts program to fight human trafficking.

What did Illinois do with marijuana tax money?

It requires 25 percent of marijuana tax dollars to be put in that fund and used to provide disadvantaged people with services such as legal aid, youth development, community reentry and financial support.

Does Oregon have marijuana tax?

The state excise tax on weed sales already stands at 17\%, plus a 3\% local tax. Oregon’s 20\% tax rate on cannabis is far lower than that in two neighboring states: Washington’s rate is 46\% and California’s is 45\%.

How much revenue does legalization of marijuana generate for States?

Since 2014, when sales began in Colorado and Washington, legalization policies have provided states a new revenue stream to bolster budgets and fund important services and programs. As of May 2021, states reported a combined total of $7.9 billion in tax revenue from legal, adult-use marijuana sales.

How should we tax recreational marijuana sales?

While that might be the simpler way to go, it does not necessarily offer an equitable solution. Most states also levy the general sales tax on recreational marijuana sales, which should be encouraged as a well-designed sales tax is levied on all final consumer purchases while exempting business inputs.

Which states have the highest marijuana tax rates?

The highest cannabis taxes are in Washington—a staggering 37\%! The next one in line is Oregon, with 17\%. California and Colorado follow with 15\% each, while Maine is the fifth position with 10\%. Is Colorado Marijuana Tax Revenue Really That Big? The tax revenue that has definitely attracted the most attention comes from the state of Colorado.

Where does the cannabis tax money go?

A substantial piece of the 15\% wholesale tax paid by cannabis cultivators goes to local governments, while the remainder is deposited into the state’s Distributive School Account to fund public education. The 10\% cannabis retail tax has added hundreds of millions of dollars to the state’s rainy day fund.