BOSTON (AP) — Excise taxes on marijuana sold for adult recreational use exceeded excise taxes on alcohol for the first time in Massachusetts, reflecting growth in marijuana sales that reached 2 $.54 billion, according to the Cannabis Control Commission.
Massachusetts has collected $74.2 million in marijuana excise tax through December 2021 – the midpoint of the fiscal year – compared to $51.3 million in alcohol excise tax, WCVB-TV reported.
The 10.75% excise tax on recreational cannabis is part of the total tax revenue. There is also a 6.25% state sales tax, plus a local tax of up to 3%. All of this totaled $208 million in tax revenue in the previous fiscal year.
The transition from medical to recreational use typically results in revenue doubling or even tripling “almost overnight”, according to Vivien Azer, senior Wall Street research analyst and managing director of Cowen which covers the sector. emerge from cannabis.
Azer said the pandemic has increased cannabis sales with people stuck and having more disposable income, but she said consumption trends have now started to normalize.
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