Maryland, Missouri Voters Approve Recreational Marijuana, Here's How Tax Revenue Has Benefited States
Voters in Missouri and Maryland voted Tuesday to legalize recreational marijuana, while measures were rejected in Arkansas, South Dakota, and North Dakota. Twenty-one states have adopted adult-use legalization laws and 16 states that have legalized cannabis for medical use.
States have seen a financial boon from marijuana. California received $1.29 billion in marijuana tax revenue in 2021, while Colorado received $423 million and Washington saw $559 million.
"States reported a combined total of $11.2 billion in tax revenue from legal cannabis sales," the Marijuana Policy Project said in March.
Nevada earned around $70 million in its first year of legalization. About 80% went to school employee salaries and benefits and 20% went to cover transportation, utilities, and school supplies. Nevada earned around $965 million in total sales for the 2022 fiscal year. The roughly $152 million in tax revenue goes mostly to schools.
Colorado has been supporting its schools with tax revenue since 2015. It has a structure where it gives the first $40 million in tax revenue to its schools.
In Maine and Michigan, the revenue has helped pay for infrastructure like roads. Some California cities have allocated the revenue to law enforcement.
Maryland may see a strong boost to its economy and infrastructure.
"Legalizing cannabis would stimulate Maryland's economy and create tens of thousands of good-paying jobs, while allowing Maryland residents to benefit from vital investments in education, public health, and public safety funded by cannabis taxes," said Eugene Monroe, chairman of the "Yes on 4" campaign in Maryland.
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