US Cannabis Companies Add $5.7 Billion to the Treasury

According to a report from the US Census Bureau, from July 2021 to December 2022, American cannabis companies contributed $5.7 billion (568.3 billion rubles) in taxes to the country’s treasury.

California Cannabis Retailers Paid the Most Taxes

In early 2021, the US Census Bureau began tracking excise tax payments on cannabis products. The agency recently published a report detailing tax revenue collected from the cannabis industry over an 18-month period. The top three regions where cannabis companies paid the most taxes were:

• California: $1.4 billion (139.6 billion rubles)
• Washington: $818.5 million (81.6 billion rubles)
• Colorado: $648.1 million (64.6 billion rubles)

Excise Tax Revenue from Cannabis Sales Across the US

Washington and Colorado were the first states in the US to legalize recreational cannabis, while California was the first to legalize medical cannabis in 1996. However, California became the fifth state to legalize recreational marijuana in 2016. As a result, these three states naturally topped the list for cannabis tax revenue. New York and New Jersey legalized recreational cannabis in 2021, while Arkansas has only legalized medical cannabis, placing these states at the bottom of the list.

Most US States Earn Revenue from Marijuana

In the second quarter of 2023, cannabis excise taxes were collected in 26 out of 50 US states. From April to June, California cannabis retailers contributed the most to the budget—$152.2 million (15.2 billion rubles). Illinois and Colorado followed, each adding $67.4 million (6.7 billion rubles) to their state treasuries.

Industry Leaders Call for Regulatory Reform

Aaron Smith, director of the National Cannabis Industry Association, commented on the US Census Bureau report: “These figures highlight the fact that the legal cannabis market is contributing to the development of local communities. However, we have yet to reach our full potential and have not completely replaced illegal businesses with tax-paying companies. Lawmakers need to improve the operating conditions for the cannabis industry. Reforming outdated banking and tax regulations will immediately boost regional markets and increase tax revenues.”