---
title: States are making bank off weed taxes
description: States with legal cannabis sales have been able to generate billions in revenue from taxes, which in turn supports nonprofits and initiatives.
---

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# [States are making bank off weed taxes](https://hs-sbup.thehustle.co/news/01132022-weed-taxes)

 Written by [Juliet Bennett Rylah](https://hs-sbup.thehustle.co/news/author/juliet-bennett-rylah) | Jan 13, 2022 1:12:28 PM

All that staying home was apparently good for the weed industry. In 2020, US cannabis sales hit a record **$17.5B**, [per](https://www.forbes.com/sites/willyakowicz/2021/03/03/us-cannabis-sales-hit-record-175-billion-as-americans-consume-more-marijuana-than-ever-before/?sh=5ce02f6a2bcf) *Forbes*.

But a new [report](https://www.mpp.org/issues/legalization/cannabis-tax-revenue-states-regulate-cannabis-adult-use/) from the Marijuana Policy Project found that states are also profiting.

The [18 states](https://www.usnews.com/news/best-states/articles/where-is-marijuana-legal-a-guide-to-marijuana-legalization) that have legalized recreational cannabis have raked in $10.4B in tax revenue since 2014. A few examples:

- Colorado, which kicked off legal adult-use sales in 2014, has collected $1.79B.
- Alaska (2016) has generated $95m.
- California (2018) — the largest state by population — has collected $3.1B.

#### **The report does not include local tax revenues…**

… but cities pull in money, too.

Denver has generated $237.5m.

California’s West Hollywood sees itself as a future Amsterdam. It currently has 6 dispensaries in 1.8 square miles, [generating](https://www.latimes.com/business/story/2021-12-08/west-hollywood-emerald-village-cannabis-tourism-recreational-marijuana-destination) $2.2m a year.

#### **Where does the money go?**

Every state is different, but many support schools, infrastructure, or nonprofits.

For example, Colorado splits its money among [funds](https://leg.colorado.gov/agencies/legislative-council-staff/marijuana-taxes%C2%A0) including the [Building Excellent Schools Today](https://www.cde.state.co.us/capitalconstruction/best) (BEST) Fund. Since 2014, it has received [$325m+](https://www.westword.com/marijuana/100-million-in-marijuana-tax-money-going-back-to-colorado-schools-11943049) in excise taxes.

California has given ~$100m to organizations that work with communities harmed by the war on drugs, [per](https://apnews.com/article/marijuana-business-california-recreational-marijuana-ae20c17fc439570783d6be602e2e4e6f) *AP News*.

Michigan [generated](https://www.michigan.gov/treasury/0,4679,7-121-1755_1963-553542--,00.html) $45.7m in 2020 from excise taxes and fees, which it splits between its School Aid Fund, the Michigan Transportation Fund, municipalities and counties, and admin costs.

**Fun fact:** A [2021 study](https://www.pewresearch.org/fact-tank/2021/04/16/americans-overwhelmingly-say-marijuana-should-be-legal-for-recreational-or-medical-use/) from the Pew Research Center found that only 8% of US adults think cannabis should be illegal, while 31% are cool with medical use and 60% are fine with recreational use, too.

[View full post](https://hs-sbup.thehustle.co/news/01132022-weed-taxes)

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