Marijuana Excise Tax Revenue Beats Alcohol In MA For First Time

Boston MA

24 January, 2022

10:31 AM

Description

BOSTON — For the first time, excise taxes on adult-use marijuana have exceeded alcohol in Massachusetts. Massachusetts collected $74.2 million in cannabis excise tax through December 2021, WCVB first reported, while alcohol sales collected $51.3 million. As of Sept. 2021, the Cannabis Control Commission reported gross total sales have now reached $2.54 billion in the Bay State, less than three years after recreational-use marijuana was first allowed in Massachusetts. While the excise tax on marijuana stands at 10.75%, there is also a 6.25% state sales tax on recreational use cannabis in Massachusetts, with some stores also adding a local tax that can reach up to 3%. The Associated Press says this added an additional $208 million in tax revenue during the last fiscal year. The pandemic likely drew some towards cannabis, as more people had disposable income and fewer bars and restaurants were open to spend money on. Vivien Azer, a senior Wall Street research analyst and managing director at Cowen who covers the emerging cannabis sector told WCVB consumption trends are starting to normalize. Azer also told WCVB that shifting attitudes about cannabis use are helping drive growth. Since Massachusetts' first two Marijuana Retailers opened in 2018, more and more retailers are starting to pop up. In total, the commission has licensed 908 Marijuana Establishments, including Cultivators, Product Manufacturers, Retailers, Independent Testing Laboratories, Microbusinesses, Marijuana Couriers, and more, the Cannabis Control Commission reported.