loader image

Taxing Weed

Picture of Site Admin

Site Admin

Legalized marijuana is a polarizing topic in the U.S., but one aspect of it that is attractive to all sides is the potential tax revenue. But how much are we actually talking about?

A recent article in Forbes magazine noted that there are now ten states that have legalized pot sales, plus D.C., and seven of them currently tax and regulate revenue-producing stores. Those taxes typically total 10-37 percent more than local sales taxes, which makes legalizing marijuana really, really lucrative to state coffers. Last year, Washington took in an estimated $319 million, while California’s revenues totaled roughly $300 million. Colorado collected $266 million. You can see on the chart that several states are too new to the marijuana marketplace, or don’t access taxes on its sales.

For those who DO, where does the money go? Colorado has the longest history with legalized pot. Among other things, its weed revenues are going toward school construction, drug abuse programs, and medical research. Aurora, CO used $900,000 to open up a space for the homeless, plus access to basic services. Pueblo, CO used its marijuana tax revenue to fund scholarships for underprivileged students.

But the social costs…? Have you read anything about dramatically rising crime rates in Washington, California, Colorado, Oregon, Nevada, Alaska, Massachusetts, Maine, Michigan or Vermont?



Securities offered through Triad Advisors, LLC, member FINRA/SPIC. Advisory services offered through TriCapital Wealth Management, Inc. TriCapital Wealth Management, Inc. is not affiliated with Triad Advisors, LLC.

Join Our Mailing List

Take control of your financial future and stay one step ahead with our valuable resources. Sign up today and start your journey towards financial success.