One of the most common arguments we hear from pro-pot advocates is that legalizing the plant can help bring in tons of revenue in the form of taxes. So far, it looks like that argument is totally valid.
GreenWave Advisors went through and analyzed what tax revenue from pot look like in the whole country of the US, and the estimated that total retail marijuana sales have brought in around $1.6 billion for pro-pot states. We can take a look at how this is breaking down on the state level for taking Colorado as an example:
In Colorado, where more than $1 billion came into the marijuana industry in 2016, the state was able to collect about $16.7 million in sales and excise taxes in February alone. So then, assuming that this monthly haul is about the same every month (which it probably isn’t, some months have better seasonal sales), that’s about $212 million for the state in a year!
In Washington, where marijuana recently was legalized recreationally, total retail sales reached $64.2 in July alone. That meant $4.17 million in sales tax collections. Additionally, the state collects a 37% excise tax on marijuana, which produced about $25 million for the state in February.
All of this is to say that pro-marijuana activists who are touting the benefits for the marijuana industry are not just blowing smoke – they’re really onto something. These taxes can be used to help rebuild economies, invest in education, invest in new industries and more. It’s a single-industry powerhouse for economies everywhere.
Since people have been purchasing through the black market for so long, the market is wide open and people are begging for the legalized marijuana industry. It’s an instant success that states can hope to benefit from the second they allow pot business owners to open their doors. Any state that falls behind on the legalizing bandwagon is only wasting time and money, as it seems.