Analysis: Adult-Use Cannabis Markets Generate Over $20 Billion in State Tax Revenue
Washington, DC: Taxes derived from the licensed sale of state-regulated cannabis products totaled more than $4 billion in 2023, according to an analysis provided by the Marijuana Policy Project.
MPP’s estimates do not include revenues derived from the sale of medical cannabis products or from the collection of state-imposed regulatory fees.
Cannabis sales generated the greatest amount of tax revenue in California (nearly $1.1 billion), followed by Illinois, Washington, and Michigan.
Since 2014, retail sales of adult-use cannabis products have generated more than $20 billion in state tax revenue.
“In many states with legal, adult-use cannabis sales, tax revenues are allocated for social services and programs,” the report’s authors acknowledged. “This includes funding education, school construction, early literacy, public libraries, bullying prevention, behavioral health, alcohol and drug treatment, veterans’ services, conservation, job training, conviction expungement expenses, and reinvestment in communities that have been disproportionately affected by the war on cannabis, among many others.”
Separate economic data published in April reported that the state-licensed cannabis industry added over 23,000 new jobs in 2023 and employs over 440,000 full-time workers.
Full text of the report, “Cannabis Tax Revenue in States that Regulate Cannabis for Adult Use,” is available from MPP.
Study: Patients With Multiple Sclerosis Report Quality of Life Improvements Following Cannabis Therapy
London, United Kingdom: Multiple sclerosis (MS) patients report improvements in their health-related quality of life following the use of medical cannabis preparations, according to observational data published in the journal Multiple Sclerosis and Related Disorders.
British researchers assessed the use of cannabis-based medicinal products (CBMPs) consisting of either flower or oil extracts in 141 MS patients enrolled in the UK Medical Cannabis Registry. (Since 2018, British specialists have been permitted to prescribe cannabis-based medicinal products to patients unresponsive to conventional medications.) Researchers assessed changes in patient-reported outcomes measures at one month, three months, and six months.
Patients reported sustained improvements in their physical and mental health following cannabis therapy. They reported few serious adverse health effects during treatment.
“This case series demonstrates a potential association between [the] initiation of CBMPs and improved patient reported outcomes in sleep, anxiety and general HRQoL [health-related quality of life] measures, over six months,” the study’s authors concluded. “Additional measures for HRQoL, including various physical and mental health subdomains, also exhibit improvements up to six months when compared to baseline.”
A prescription cannabis spray (nabiximols aka Sativex) consisting of specific ratios of THC and CBD is currently available in several countries, including Canada, France, Germany, Spain, and the United Kingdom. The drug is not approved in the United States for treatment of any condition.
Full text of the study, “Clinical outcome analysis of patients with multiple sclerosis – Analysis from the UK Medical Cannabis Registry,” appears in Multiple Sclerosis and Related Disorders.
Minnesota: State Officials Expunge Nearly 60,000 Cannabis Convictions
St. Paul, MN: State officials have reviewed and expunged more than 57,000 low-level marijuana-related convictions, according to data provided this week by the Department of Public Safety, Bureau of Criminal Apprehension.
Legislation passed last year regulating the adult-use cannabis market called for the automatic review and expungement of records for those previously convicted of misdemeanor marijuana-related violations.
“The Bureau of Criminal Apprehension has expunged (also referred to as sealing) 57,780 records in CHS [the Minnesota Criminal History System] almost three months ahead of schedule,” the agency posted Monday on its website.
A separate process will be undertaken to review marijuana-related felony records, some of which may also be eligible for expungement relief.
“These actions together will have a lasting and significant equity impact on communities throughout the state of Minnesota,” James Rowader, Executive Director of the state’s Cannabis Expungement Board, said in a press release.
Twenty-five states have enacted laws facilitating the sealing of eligible marijuana-related convictions. Publicly available data compiled by NORML finds that state courts have sealed the records of an estimated 2.2 million marijuana-related convictions since 2018.
Ohio: Officials Finalize Plans for Retail Marijuana Sales Launch
Columbus, OH: Members of a legislative panel have given final approval to regulations permitting the expedited sale of cannabis products to those age 21 and older.
Under the plan, proposed by the Department of Cannabis Control in April and approved on Monday by the Joint Committee on Agency Rule Review, existing medical dispensaries may apply for dual licensure. (State lawmakers approved medical cannabis access in 2016.) Regulators are anticipated to begin accepting applications on June 7th. Facilities may begin engaging in adult-use cannabis sales immediately following approval.
“The sooner consumers have market access to cannabis products, the more quickly we will begin to see disruptions to the unregulated marketplace,” NORML’s Deputy Director Paul Armentano said. “Retailers provide consumers with the option of obtaining lab-tested products in a safe, regulated environment.”
While state law permits localities to ban the establishment of new adult-use retailers, it does not permit municipalities with existing dispensaries to prohibit them from selling cannabis products to adults.
Adult-use marijuana sales will be subject to a ten percent excise tax in addition to an existing 5.75 percent sales tax. Sales are anticipated to generate between $276.2 million and $403.6 million in annual cannabis tax dollars within five years.
Voters in November approved a citizens-initiated measure (Issue 2) legalizing the possession, home cultivation, and retail sale of cannabis for those age 21 or older. Provisions in the initiative called upon regulators to begin issuing retail licenses by late 2024.
Following the vote, several of the state’s leading Republicans moved to pass legislation gutting many of the initiative’s key provisions. Those efforts stalled after NORML and others generated thousands of communications urging legislators to enact Issue 2 as written.
Twenty-four states have legalized the adult-use marijuana market. Ohio was the 14th to do so by a public vote.
