BOSTON (AP) — Excise taxes for marijuana sold for adult recreational use exceeded alcohol excise taxes for the first time in Massachusetts, reflecting growing marijuana sales that reached $2.54 billion, according to the Cannabis Control Commission.
Massachusetts collected $74.2 million in marijuana excise tax through December 2021 — halfway through the fiscal year — compared to $51.3 million in alcohol excise taxes, WCVB-TV reported.
The excise tax of 10.75% 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%. It all added up to $208 million in total tax revenue last fiscal year.
The transition from medical to recreational use typically leads to a doubling or even tripling of revenues “almost overnight,” according to Vivien Azer, a senior Wall Street research analyst and managing director at Cowen who covers the emerging cannabis sector. [Read More @ Boston.com]
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