Marijuana Tax Revenue by State

The Current State of US Marijuana Legalization

Although Americans today have grown up in a political environment of oppressive federal prohibition and have been conditioned to accept this approach as the cultural norm, medical cannabis is regulated and taxed on a statewide level in 33 states as well as the District of Columbia. Additionally, 11 states regulate and tax marijuana used for recreational or adult-use purposes. Recreational marijuana sales are presently occurring in ten states which, in total, account for 27 percent of the US population. These states include:

• Alaska
• California
• Colorado
• Illinois
• Massachusetts
• Michigan
• Nevada
• Oregon
• Washington
• Maine

Comparing Legal Cannabis Sales to Black Market Sales

Generating sales of $5.8 billion-$6.6 billion in the United States, the legal marijuana market rivals Americans’ collective spending on Netflix, though the estimated total American demand for marijuana represents a market demand of $50 – $55 million. This vast difference in real consumption versus market demand can be attributed to the estimated black market cannabis currently traded. As more states continue to legalize recreational cannabis, it is likely black market profits will…