The report, from the Institute on Taxation and Economic Policy, found the 11 states where marijuana is legal pulled in just shy of $3 billion in excise taxes on pot in 2021, compared with about $2.5 billion they made on alcohol excise taxes or liquor store profits.
“This is still a small part of state budgets, but it’s a very quickly growing area. There aren’t many revenue sources that grow year over year. This has been a several-year trend now,” said Carl Davis, one of the authors of the ITEP study. “The early states, what you see is revenue start low and grow very, very quickly.” Read more