Taxes

States can’t count on marijuana tax revenue growth

Cannabis supply has eventually exceeded demand in all mature state markets.
Jars of marijuana line a shelf at The Flower Shop Dispensary in Sioux Falls, S.D. on Oct. 14, 2022. (AP Photo/Stephen Groves)

Taxing recreational marijuana sales boosts state revenues, but strong initial growth doesn’t last, according to new data collected by the Marijuana Policy Project. 

Cannabis supply has eventually exceeded demand in all mature state markets. That has driven down prices and therefore tax collections, which are typically set as a percentage of retail price.

Stay informed
Subscribe to keep reading.

Sign up today to get the latest state new at your fingertips and in your inbox.