Taxes

Marijuana tax revenue surpasses alcohol in 8 states

Tax rates on both products vary widely by state.
Jars of marijuana line a shelf at The Flower Shop Dispensary in Sioux Falls, S.D. on Oct. 14, 2022. (AP Photo/Stephen Groves)

At least eight states are now earning more revenue from sales of legal marijuana and cannabis products than they are from alcohol sales and liquor store profits, a remarkable shift in consumer behavior for a product that still isn’t legal in about half the country.

Data from recent fiscal years show marijuana tax receipts booming, especially during the pandemic, while revenues from alcohol sales remain largely flat.

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