Marijuana and Its Taxes

NSTPInternal Revenue Service (IRS)

Marijuana and Its Taxes
Marijuana and taxes are discussed in a new report from Leafly that looks at some of the weed-related taxes. There are 34 states where marijuana use is OK with a doctor’s prescription and 10 (plus Washington, D.C.) where personal pot smoking for fun is allowed. The cannabis information resource website says that while in the 11 jurisdictions that have legalized recreational use of pot, only seven currently tax and regulate revenue-producing pot stores. What is all that money used for? Those taxes, which typically are 10 percent to 37 percent on top of local sales taxes, go toward such government programs as school construction, drug abuse prevention programs and medical research. Leafly said that it supports jobs in school construction, drug abuse programs and medical research, among other areas. Aurora in Colorado is a notable example of pot money put to good use with the municipality using $900,000 to open a space for individuals experiencing homelessness. The Aurora Day Resource Center was developed in an old police department gym and it is aimed to give homeless people a place to go during the day while providing access to basic services. Pueblo in Colorado was using marijuana tax revenue to fund scholarships for underprivileged students last year. Leafly says Washington State is the biggest pot tax winner, collecting an estimated $319 million in 2018. California is close behind, with an estimated $300 million in 2018 pot-related tax revenue.