Why it matters: The U.S. Census Bureau has published a report on cannabis tax revenue numbers for each state, providing insight into the progress of the cannabis industry on a nationwide scale. This data is crucial for measuring the economic activity of the industry and assessing government financial activities.
What they are saying: The report highlights the excise taxes collected by states since Q3 2021. Washington and Colorado, the first states to legalize cannabis, have collected the most in excise sales taxes, while California and Illinois have also seen significant revenue. However, newer markets like New York and Vermont have relatively lower tax collections.
The big picture: The report showcases the growing interest in uniting cannabis sales and tax data to better track the industry’s progress. This data will be valuable for economists, analysts, and policymakers to understand the economic conditions and financial activities related to cannabis.
What to watch: The report does not include automatic totals, so manual addition reveals that states with reported cannabis excise sales tax numbers have collected $5.7 billion since Q3 2021. Additionally, monthly sales revenue records for states like Illinois, Michigan, and Massachusetts are not reflected in the report. It will be interesting to see the future growth and performance of the cannabis industry, especially in newer markets.
My take: The publication of this report by the U.S. Census Bureau is a significant development in tracking the economic impact of the cannabis industry. It provides valuable data for analyzing the progress of legalization and the financial activities associated with cannabis. As the industry continues to grow, it will be important to monitor these tax revenue numbers and their implications for the economy and government policies.
