The US Senate is about to debate and vote on SAFER Banking which will be a help to the cannabis industry, both in safety and for practical business reasons. The House has approved similar bills 7 times prior, so hopefully they will be able to look around and see facts. And one thing they should do is note states are raking in money with the cannabis consumer boom. The extra tax revenue is helping compete budgets.
States with reported cannabis excise sales tax numbers totaled almost $6 billion since Q3 of 2021. While to the federal government, the number seems tiny, to states it is significant. And reflects how consumers are continuing to drive marijuana revenue and spending!
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Companies are seeing an uptick with market leader Canopy Growth seeing an 11% income increase. The industry is look at Washington, DC for helpful news while the public settles in with marijuana in the mix with alcohol for recreational use. Washington and Illinois are leaders in cannabis tax collection but all the legal governments are reaping benefits.
States are reporting another growth year for 2022 and expect increases in sales in 2023. A combination of more state becoming fully operational and the trend to add marijuana to the mix and decrease alcohol is a glimpse of the market.
“Cannabis use will continue to rise as new states open to adult-use sales and the stigma is removed. The reality is cannabis is a less harmful recreational substance than alcohol and a valuable medicine for those who need it. As adoption increases, states can benefit by transitioning consumers to legal and tested products and collecting taxes on these sales.” shared Jesse Redmon, Head of the Cannabis Division of Water Tower Research.
The Motley Fool researched and discovered states without legal weed are leaving big money on the table. The sad news is a big chunk of the lost revenue is under the table in their thriving black markets. Alabama could earn $92+ million annually, Mississippi $47+ million, and Louisiana $81+ million. All three are in the poorest in the country. Kentucky, home of Senator Mitch McConnell who has block legal marijuana ever chance he can, would earn $83+ million.
California is a major source of concern with high taxes and little enforcement. Legal cannabis companies are being pummeled by illicit operations the state allows to operate with little chance of penalty.
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A new map published by the U.S. Census Bureau details the proportion of state revenue made up by marijuana tax money, and in some cases, the figures are eye-popping.
Hopefully Congress will realize states are raking in money with the cannabis consumer boom and move for federal legalization. This will help medical marijuana patients and general customers.