Legal sale of marijuana generates more than US$20 billion in taxes in the US

Since cannabis sales began in the states of Colorado and Washington in 2014, more than US$20 billion in taxes have been generated in the United States, according to an analysis by the Cannabis Policy Project. Dope (MPP) released this Wednesday.

At least 24 of the 50 states in the Union have legalized the possession of cannabis for those over 21 years of age and the organization, based in Washington DC, affirms that in just the first quarter of this year those states have raised US$ 4,000 million in taxes.

“In many states where adult sale and use of marijuana is legal, tax revenue is allocated to social services and programs.”the report added.

According to MPP, this includes funding for education, school construction, public libraries, mental health care, alcohol and drug addiction treatment, military veteran services and job training.

In Colorado, the state with the longest experience in legalizing dope, tax collection in 2014, that is, in the first year of the entry into force of decriminalization, was US$ 46.1 million. The accumulated total until 2023 amounts to US$ 2,381 million.

But the increase has not been sustained and Colorado experienced reductions in tax collection, as reflected by US$396 million in 2021, US$305 million in 2022 and US$256 million in 2023.

Factors contributing to that decline include lower prices at the wholesale level, and the fact that the legalization of marijuana in more states has resulted in fewer visits from out-of-state consumers.

“Cannabis legalization offers tremendous financial benefits for state governments and social services and programs” stated MPP.

With the establishment of regulated markets for adult-use cannabis, “State and municipal governments are able to collect sales taxes and benefit economically with the creation of thousands of new jobs”, according to the organization.