Eleven states and the District of Columbia have provided the green light to recreational cannabis, beginning with Colorado and Washington state in 2012, with sales currently underway in seven states. In these states, bringing marijuana into the reputable economy was generally sold to officials and the public as a way to raise new tax income from sales and production and funnel it into regions like education, mental well being and law enforcement.
So what have these states seasoned? Tax income that has largely fallen quick of expectations and a increasing recognition that taxing marijuana is fairly difficult.
It is not just that states have struggled in projecting the size of a legal marijuana industry and deciding how to most effective tax and regulate it. In a lot of techniques, states are also grappling with their central objective of bringing cannabis out of the black industry.
Advocates for legalization in California initially envisioned legalized pot raising $1 billion a year. As it turns out, the state raised not even a third of that in fiscal 2018-19, the 1st complete year because recreational sales started. Massachusetts had projected it would bring in $63 million in income for its 1st year of recreational pot, which ended in June, and didn’t even get half of that.
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