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Michigan Breaks Another Marijuana Sales Record For December, State Officials Say

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Michigan closed out 2021 with another record-breaking month of adult-use marijuana sales in December, state officials say.

The state saw more than $135 million in recreational cannabis purchases and about $33 million in medical marijuana sales last month.

Andrew Brisbo, executive director of the Michigan Marijuana Regulatory Agency (MRA), said on Monday that the numbers “marked another high for the adult-use industry.” The previous adult-use marijuana sales record happened in October, with about $128 million in purchases.

“It’s good to note that the new high is not because of increasing prices,” he said. “In fact, prices in medical and adult-use continue to drop, month over month, and year over year.”

While December set the new record for adult-use marijuana purchases, the state saw the most combined recreational and medical cannabis sales in July, with about $171 million sold.

The latest data brings Michigan’s total cannabis sales for 2021 to $1,311,951,737 for adult-use and $481,225,540 for medical marijuana. And those purchases are translating into hundreds of millions of dollars in tax revenue for the state.

About $131 million is going to a cannabis excise tax fund that supports various initiatives such as infrastructure and public education, MRA spokesman David Harns said. Another $115 million will support the state general fund.

In nearby Illinois, December was also another record-breaking month, with $137.9 million in adult-use marijuana sales.

Last year, Illinois took in almost $100 million more in tax revenue from recreational cannabis sales than from alcohol, state data shows. And cannabis tax dollars have exceeded those for liquor every month since February.

Part of that marijuana tax revenue is actively funding equity initiatives in the state. For example, Illinois officials announced last month that applications are opening for $45 million in new grants—funded by cannabis tax dollars—that will support programs meant to reinvest in communities most harmed by the drug war.

States that have legalized cannabis have collectively garnered more than $10 billion in tax revenue since the first legal sales started in 2014, according to a report released by the Marijuana Policy Project (MPP) last week.

In Arizona, medical and adult-use marijuana sales topped $1 billion in the first ten months of the year, state tax officials said.

California collected about $817 million in adult-use marijuana tax revenue during the 2020-2021 fiscal year, state officials estimated in August. That’s 55 percent more cannabis earnings for state coffers than was generated in the prior fiscal year.

A recent scientific analysis of sales data in Alaska, Colorado, Oregon and Washington State found that marijuana purchases “have increased more during the COVID-19 pandemic than in the previous two years.”

In July alone, at least three states saw record-breaking sales for recreational cannabis. The same goes for Missouri’s medical marijuana program.

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Colorado Earned $423 Million In Marijuana Tax Revenue Last Year

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More than $12 billion in marijuana has been sold since legalization in 2014, with the state collecting over $2 billion in taxes.

By Robert Davis, The Center Square

Colorado brought in a record $423 million in tax revenue from marijuana sales last year, according to the latest market report from the state’s Department of Revenue (DOR).

In all, Colorado has sold more than $2 billion in marijuana through November 2021, making it the second consecutive year that the state has eclipsed that mark. In 2020, the state collected $387 million in taxes from the sales.

Colorado’s tax revenue total also implies that the state beat its previous record of $2.1 billion in sales, though DOR said it will release the final numbers next month.

More than $12 billion in marijuana has been sold since legalization in 2014, with the state collecting over $2 billion in taxes.

Colorado collects its marijuana taxes from a 2.9 percent state sales tax on marijuana sold in stores, a 15percent state retail marijuana sales tax and a 15 percent retail marijuana excise tax on wholesale sales and transfers of marijuana. The state also collects fee revenue from marijuana license and application fees.

In December, Colorado collected more than $30 million in taxes, capping off a five-month streak of declining tax revenue.

The state also recorded more than $158 million in sales in November, with both medical and recreational marijuana showing significant declines in sales.

Colorado sold $131 million in recreational marijuana in November, an 11 percent drop when compared to October.

Similarly, November’s medical marijuana sales totaled $26 million, representing a drop of more than 10 percent on a month-over-month basis.

The story was first published by The Center Square.

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Arizona Hits Recreational Marijuana Sales Record, With New Program Catching Up To Medical

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Medical cannabis sales eclipsed recreational from February through October—adult-use sales began on January 22—but in November, those numbers were almost identical.

By David Abbott, Arizona Mirror

Arizona cannabis sales continued on an upward trajectory in 2021, with the Arizona Department of Revenue reporting more than $1.23 billion in combined cannabis sales through the first 11 months of the year.

In November, adult-use recreational cannabis sales hit a new peak and crossed $60 million for the first time. Medical sales have fluctuated throughout the year, topping out at about $73 million in March and April.

Medical sales eclipsed recreational from February through October—adult-use sales began on January 22—but in November, those numbers were almost identical, with the medical program bringing in an estimated $60,365,545, while recreational sales reached $60,299,191.

In October, estimated cannabis sales for both programs were within $7 million of each other, the first time recreational sales came within $10 million of medical sales. But the adult-use market is in its infancy and is expected to match the medical program’s economic heft within a few years.

Cannabis sales also provided a solid tax contribution in 2021.

TAXABLE Sales (Estimated) to date
PERIOD COVERED ADULT USE‐420 MEDICAL‐ 203 EXCISE TAX
Jan‐21 $7,370,460 $42,140,608 $11,391,371
Feb‐21 $32,697,512 $55,320,625 $39,246,992
Mar‐21 $51,628,266 $72,934,129 $55,808,898
Apr‐21 $54,037,990 $72,944,477 $58,954,469
May‐21 $52,843,171 $70,158,567 $59,372,157
Jun‐21 $50,943,017 $64,854,708 $56,749,799
Jul‐21 $54,324,542 $70,880,576 $58,740,337
Aug-21 $51,877,656 $65,492,643 $57,675,654
Sep-21 $52,450,298 $62,704,561 $57,663,164
Oct-21 $59,508,253 $65,415,461 $62,446,719
Nov-21 $60,299,191 $60,365,545 $63,187,702
Dec-21 $20,922 $591,294 $0
$528,001,278 $703,803,194 $581,237,261

The state collects 16 percent excise tax on recreational sales in addition to the standard sales tax; medical patients pay a 6 percent excise tax. Local jurisdictions charge an additional 2 percent or so for all marijuana sales.

Taxes collected in November for recreational cannabis sales were $5,055,950, with medical slightly less at $5,026,317. The excise tax reached $10,110,032 for a total of $20,192,299 in tax revenue from November marijuana sales.

Proposition 207, which voters approved in 2020 to legalize adult use of cannabis, included specific uses for taxes collected on the recreational side. One-third is dedicated to community college and provisional community college districts; 31 percent to public safety—police, fire departments, fire districts, first responders—25 percent to the Arizona Highway User Revenue Fund and 10 percent to the justice reinvestment fund, dedicated to providing public health services, counseling, job training and other social services for communities that have been adversely affected and disproportionately impacted by marijuana arrests and criminalization.

The state collected a total of $196,447,570 in tax revenue the first 11 months of 2021 from cannabis sales, with $44,533,436 from recreational, $58,916,172 from medical and $92,997,962 from the excise tax.

This story was first published by Arizona Mirror.

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States Have Collected More Than $10 Billion In Adult-Use Marijuana Tax Revenue, Report Finds

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States that have legalized marijuana have collectively garnered more than $10 billion in cannabis tax revenue since the first legal sales started in 2014, according to a report released by the Marijuana Policy Project (MPP) on Thursday.

The adult-use legalization movement that started in Colorado and Washington State has greatly expanded in the years since, with 18 states having moved to end prohibition and most taxing and regulating marijuana sales. As of December 2021, sales have translated into about $10.4 billion in tax revenue for states that are now using those dollars to fund various programs and initiatives, the report found.

That doesn’t even include tax revenue from separate medical cannabis programs that are in place in a majority of U.S. states.

The report from MPP—which expands on an earlier analysis it released in May—breaks down revenue numbers from legal states, how those tax dollars are being used and what kinds of tax schemes will soon be in effect as more states like New York, New Jersey and Montana implement legalization.

“States that have legalized cannabis for adults are reaping significant economic benefits. The legal adult-use cannabis industry has now generated over $10 billion in new tax revenue, and in many instances that revenue is being distributed to much needed public services and programs, including reinvesting in communities that were devastated by the war on drugs,” Karen O’Keefe, director of state policies at MPP, said. “This is in stark contrast to prohibition, which costs taxpayers billions of dollars each year to enforce.”

While marijuana tax revenue might not be a panacea for state and local governments, it’s clear that many of the dollars derived from these regulated markets are supporting important initiatives. MPP offered several examples:

In Alaska, half the revenue from adult-use cannabis sales “is invested in the Recidivism Reduction Fund and supports reentry programs for currently and formerly incarcerated individuals,” the report says.

Via MPP.

“More than $100 million has been distributed to community groups and local nonprofit programs that benefit people adversely impacted by punitive drug laws” in California.

Via MPP.

California also announced in June that it is awarding about $29 million in grants funded by marijuana tax revenue to 58 nonprofit organizations, with the intent of righting the wrongs of the war on drugs. The state collected about $817 million in adult-use marijuana tax revenue during the 2020-2021 fiscal year, state officials estimated last summer. That’s 55 percent more cannabis earnings for state coffers than was generated in the prior fiscal year.

Nearly $500 million of cannabis tax revenue in Colorado has supported the state’s public school system.

Illinois, which has seen its market rapidly expand since its launch in January 2020, is dedicating portions of tax revenue to mental health services, as well as local organizations “developing programs that benefit disadvantaged communities.”

Via MPP.

The state generated almost $100 million more in tax revenue from adult-use marijuana sales than from alcohol in 2021, state data shows. And cannabis tax dollars have exceeded those for liquor every month since February.

In July, state officials put $3.5 million in cannabis-generated funds toward efforts to reduce violence through street intervention programs.

In Washington State, “for every $1 billion in revenue collected from the cannabis sales tax, nearly $600 million is funneled into public health initiatives, including a fund that provides health insurance for low-income families,” MPP said.

Via MPP.

Reform advocates aren’t the only ones interested in seeing how states are approaching the tax side of marijuana legalization. The U.S. Census Bureau also has plans to begin collecting and compiling data on revenue that states generate from legal cannabis.

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