 Arizona’s tax revenue numbers for March show the incredible economic opportunity cannabis legalization offers, outpacing alcohol & tobacco tax revenue combined.
Tax revenue for the state from both medical and recreational marijuana was nearly $6.3 million in March. The cannabis money easily surpassed both alcohol’s $3.7 million and tobacco’s $1.7 million (according to the Arizona Joint Legislative Budget Committee). The $6.3 million was just taxes that went towards the state’s general fund. Cannabis excise taxes were counted separately, and brought the state another $11.9 million in March. These excise tax funds mostly went to the state, with smaller portions being distributed to cities and counties. Samuel Richard, executive director of the Arizona Dispensaries Association, spoke with Marijuana Moment, and said, “Can you imagine what the fiscal impact would be if the government was a partner in our success, rather than an opponent?” Arizona isn’t the only state seeing significant shifts in so-called “sin tax” revenue post-reform. The Institute on Taxation and Economic Policy released an analysis which looked at 11 states with legalized adult use marijuana and found that, on average, “cannabis revenues outperformed alcohol by 20 percent” in 2021. (Via ITEP) And some, like Arizona, Illinois, and Massachusetts are doing far more than 20% better. Comments are closed.
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