The numbers are in and the evidence is irrefutable: taxation and regulation of recreational cannabis equal healthy gains for state funds. These numbers are borderline unbelievable – below is a snapshot by state:
Since the inception of recreational cannabis in October of 2016 Alaska has welcomed over $3 Million dollars in tax revenue. Figures are expected to increase for the first fiscal year Q32017-Q2018. A large portion of the tab is footed by a mere 15 licensed cultivators statewide with an average tax paid per cultivator of $10,849.
The model for successful implementation, Colorado was first to market between itself and fellow 2012 legalized Washington. As a result, Colorado is seeing over half a billion dollars in total tax revenue over half of which is going to K-12 education. Public schools are not the only institution that is seeing resultant gains; rural towns are now funding building projects for recreation centers, issuing scholarships, filling potholes – to mention a few. Analyst figures project a 5 year compounded growth rate of 25% so the entire state can look to see the positive effects for years to come.
One of the most robust states as far as immediate windfalls go; Nevada recreational cannabis sales eclipsed $27 Million during its first month of business. License and application fees made up $6.5Million of this, 15% of which goes directly to schools. Nevada recreational cannabis sales have already trumped Washington and Oregon in 2017.
Despite being second to market, with excise taxes raking in upwards of $62 Million dollars, Washington State’s market has not experienced the same exponential growth as its legalized counterparts. While sales reached $1.4 Million/day in 2015, excessive regulation and taxation on producers, tax revenue has decreased since previous years. Pitfalls aside, the healthy tax revenue is nothing to be refuted.
Even though recreational cannabis is legal in 8 states plus the District of Columbia, with regulated sales in just 5 of the aforementioned, tax revenue from these five states has garnered well over half a billion in tax revenue. Which forecasts suggesting revenues of over $1.8 Billion, the term “money talks” comes to mind, and it is screaming at the top of its lungs for investors and voters to pay attention.