California Sets A New Marijuana Tax Revenue Record
Beyond just looking at investing in marijuana stocks there are other areas of the industry. Yet even though now looks to be a good time to find top cannabis stocks to buy. Currently, outside of the market, the cannabis industry is continuing to boom in a major way. For starters, more states are going legal which is only adding more value to the overall industry.
As of now more than half of the United States has legalized marijuana in some way. This has led to a big increase in the amount of money each state has been able to generate. Which is an incredible accomplishment considering the progress of the industry and cannabis reform. With the increase in revenue being made from each legal state some of that revenue is being used to fund programs in certain states.
In some legal states, the tax money the state received from the sale of legal cannabis is being used in a constructive way. These programs are being used to help promote social equity and repair areas that were badly impacted by the war on drugs. Yet even just being at this point with the U.S. cannabis industry is a huge milestone in its entirety. For something that was once a taboo subject to having a few legal states has now turned into a nationwide green rush.
So as of 2021 more states have been generating record-breaking cannabis sales. Which has been only adding more reasons to federally legalize cannabis altogether in the US. Below we will discuss how California is still a leader in the cannabis world even with over 30 states having an active marijuana market.
Cannabis In California Is Still A Cash Cow
For the fiscal 2020-2021 yea California has made approximately $1 billion with close to $817 million in recreational cannabis tax money. This makes for a 55 percent increase in cannabis earnings for state coffers in comparison to the fiscal year prior. The nonpartisan Legislative Analyst’s Office said combined excise and cultivation tax revenue for the fourth quarter was about $212 million.
This came close to nearing the amount of the Q1 of the fiscal year for the most tax dollars raised. Which was the largest amount in any single three-month period since legal sales launched. The new figures did not account for any additional regular sales taxes generated from cannabis.
As well neither do they add any local revenues from areas where the sale of cannabis is up and running. Notably, this trend of increased sales and tax revenue has been occurring amid the coronavirus pandemic. This increase compelled many businesses to close and contributed to the growing number of unemployment. The marijuana marketplace also prospered despite the fact that cannabis businesses are not able to obtain federal aid that was afforded to other industries.
California’s Cannabis Tax Money Is Still Growing
With the new numbers in place, this is just a preliminary tally of California’s cannabis revenue haul. Most times it is normally the circumstance that some businesses file their returns late. From this, the quarterly totals are then adjusted in a higher amount. In Q1 the amount of tax revenue made was revised in the new report. For instance, from an original estimate of $163 million to a new total of $197 million.
Info released by the California Department of Tax and Fee Administration has added some things to note. Since 2018 the total amount of sales from recreational marijuana made by the state is $2.8 billion. This figure includes $1.4 billion in excise tax, $347.4 million in cultivation tax, and $1 billion in sales tax.
California isn’t a state all alone when it comes to high cannabis sales. A recent scientific analysis of sales data throughout the United States found some important info. This analysis 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.
Final Thoughts On California’s Record Cannabis Tax Revenue
The state of Illinois reached close to $128 million just in the month of July. This made for more than 2 times the total monthly sales from just a year ago. For the month of July that made for the 5th consecutive month that sales were over $100 million. If cannabis sales continue to flourish the state is on track to see more than $1 billion in adult-use marijuana sales in 2021.
Recreational cannabis sales in Maine hit $$9.4 million in July. These sales made for a 45 percent increase from the prior month’s record. Michigan marijuana sales broke another record last month with more than $171 million in cannabis transactions. This data was from a state regulatory body. There were $128 million in adult-use sales and $43 million in medical cannabis purchases in July.
During the pandemic, marijuana businesses were deemed essential, From this many states allowed cannabis retailers to remain active. As marijuana businesses were still going some jurisdictions issued emergency rules. This included allowing curbside pickup, delivery services and other more relaxed policies in order to facilitate social distancing.