Legal Adult Cannabis Sales in Massachusetts Surpass Half a Billion Dollars Since Legalization
Feb 12, 2020
The campaign in support of Question 4 promised Massachusetts voters that legalizing and taxing marijuana for adult use would create jobs and generate substantial tax revenue for state and local governments.
That promise is being fulfilled, according to an analysis of the state's data. As of January 29, retailers had conducted approximately $509 million in adult cannabis sales, raising an estimated $86.5 million in tax revenue for the state government and an additional $15 million in tax revenue for local governments. Adult cannabis sales are subject to the state’s standard 6.25% sales tax, as well as a 10.75% excise tax. Local governments also have the option of taxing sales up to an additional 3%.
“Massachusetts' regulated adult-use cannabis market is still in its very initial stages, but it is already beginning to fulfill the promise of Question 4," said Adam Fine, managing partner of Vicente Sederberg's Boston office, who participated in the drafting of the successful 2016 legalization initiative. "Over the past 15 months, half a billion dollars in cannabis sales took place above board in licensed retail stores instead of in the illegal market. These businesses are creating jobs in their communities, and they are generating significant new revenue for our state and local governments. The benefits will only continue to grow as more retail stores get licensed across the state."