Colorado Earned $423 Million In Marijuana Tax Revenue Last Year

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. In fact, prices in medical and adult-use continue to drop, month over month, and year over year.

Dec 2020: adult use was $350/oz & medical was $265/oz.

Dec 2021: adult-use at $185/oz & medical at $175/oz.

— Andrew Brisbo (@AndrewBrisbo) January 10, 2022

“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.

Taxes flowing into the state of Michigan because of legalized marijuana in 2021:

$131.2 million goes to the marijuana excise fund which gets divvied up amongst local government, roads, and schools.

$115.4 million goes to the state sales tax bucket.

Almost 1/4 billion in taxes. https://t.co/kw2N4shya1

— David Harns (@DavidHarns) January 10, 2022

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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