{"id":55174,"date":"2022-04-28T12:00:00","date_gmt":"2022-04-28T12:00:00","guid":{"rendered":"https:\/\/merryjane.com\/arizona-makes-three-times-more-cash-from-weed-taxes-than-from-booze-and-tobacco-combined\/"},"modified":"2022-04-28T12:00:00","modified_gmt":"2022-04-28T12:00:00","slug":"arizona-makes-three-times-more-cash-from-weed-taxes-than-from-booze-and-tobacco-combined","status":"publish","type":"post","link":"https:\/\/merryjane.com\/news\/arizona-makes-three-times-more-cash-from-weed-taxes-than-from-booze-and-tobacco-combined\/","title":{"rendered":"Arizona Makes Three Times More Cash From Weed Taxes Than From Booze and Tobacco Combined"},"content":{"rendered":"<p>Arizona&#8217;s <a href=\"https:\/\/merryjane.com\/news\/arizona-sells-dollar12-billion-of-weed-in-2021-its-first-year-of-legal-adult-use-sales\" target=\"_blank\" rel=\"noopener\"><u>legal weed industry<\/u><\/a> is only a little more than a year old, but it&#8217;s already drawing in <a href=\"https:\/\/www.kgun9.com\/news\/local-news\/arizona-cannabis-sales-generate-3x-the-tax-revenue-of-alcohol-and-tobacco-combined\" rel=\"nofollow noopener\" target=\"_blank\"><u>three times as much tax revenue<\/u><\/a> as the state&#8217;s liquor and tobacco industries combined.<\/p>\n<p>The Grand Canyon state collected $18.2 million in legal weed taxes this March, according to a new monthly <a href=\"https:\/\/www.azjlbc.gov\/mfh\/mfh-apr-22.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><u>report<\/u><\/a> by the Arizona Joint Legislative Budget Committee. This revenue combines $11.9 million in pot excise taxes, $3.4 million in adult-use \u201cTransaction Privilege\u201d taxes, and another $2.9 million in medical pot taxes. So far this year, the state has already collected $149.7 million in cannabis taxes.<\/p>\n<p>March&#8217;s weed tax haul is more than triple the $5.4 million in booze and cigarette taxes Arizona collected that same month. The budget committee reports that the state collected $3.7 million in liquor taxes last month, and $31.6 million so far this year. Tobacco taxes came in at $1.7 million in March and $15.4 million year-to-date. Again, these year-to-date totals combined are less than a third of the state&#8217;s 2022 weed tax revenue.<\/p>\n<p><iframe loading=\"lazy\" allowfullscreen=\"true\" frameborder=\"0\" width=\"640\" height=\"430\" scrolling=\"no\" src=\"https:\/\/merryjane.com\/embed\/gallery\/these-are-the-dopest-diy-pipes-and-bongs-west-of-amsterdam\/1\" ><\/iframe><\/p>\n<p>Arizona is not the only state to see its cannabis tax revenue exceed its taxes on booze. Last April, Illinois&#8217; weed tax revenue <a href=\"https:\/\/merryjane.com\/news\/illinois-officially-makes-more-tax-revenue-from-weed-than-booze\" target=\"_blank\" rel=\"noopener\"><u>outstripped its alcohol taxes<\/u><\/a> for the first time, and weed tax income was <a href=\"https:\/\/merryjane.com\/news\/illinois-continues-to-make-more-money-from-weed-than-booze\" target=\"_blank\" rel=\"noopener\"><u>almost a third higher<\/u><\/a> than alcohol revenue by year&#8217;s end. But in states with more established weed markets, the disparity is even more extreme. Colorado, for example, actually makes almost <a href=\"https:\/\/thehill.com\/news\/state-watch\/3462636-pot-taxes-surpass-those-from-alcohol-in-legalization-states\/?rl=1\" rel=\"nofollow noopener\" target=\"_blank\"><u>8 times<\/u><\/a> as much tax revenue from weed than it does from hooch.<\/p>\n<p>According to a recent <a href=\"https:\/\/itep.org\/cannabis-taxes-outraised-alcohol-by-20-percent-in-states-with-legal-sales-last-year\/\" rel=\"nofollow noopener\" target=\"_blank\"><u>report<\/u><\/a> from the Institute on Taxation and Economic Policy (ITEP), the 11 states that were selling adult-use weed last year collected nearly $3 billion in combined tax revenue. These same states only collected a combined $2.5 billion from alcohol taxes. Alaska, Maine, Michigan, and Oregon are the only adult-use weed states that made less money from weed than from booze last year.<\/p>\n<p>\u201cThis is still a small part of state budgets, but it\u2019s a very quickly growing area,\u201d said Carl Davis, co-author of the ITEP study, <a href=\"https:\/\/thehill.com\/news\/state-watch\/3462636-pot-taxes-surpass-those-from-alcohol-in-legalization-states\/?rl=1\" rel=\"nofollow noopener\" target=\"_blank\"><u>to <\/u><u><em>The Hill<\/em><\/u><\/a>. \u201cThere aren\u2019t many revenue sources that grow year over year. This has been a several-year trend now. The early states, what you see is revenue start low and grow very, very quickly.\u201d<\/p>\n<p><iframe loading=\"lazy\" allowfullscreen=\"true\" frameborder=\"0\" width=\"640\" height=\"430\" scrolling=\"no\" src=\"https:\/\/merryjane.com\/embed\/gallery\/pipes-and-bongs-so-wild-they-pass-for-eclectic-high-flying-art\/undefined\" ><\/iframe><\/p>\n<p>Tobacco taxes are a different story, though. ITEP <a href=\"https:\/\/itep.org\/cannabis-taxes-outraised-alcohol-by-20-percent-in-states-with-legal-sales-last-year\/\" rel=\"nofollow noopener\" target=\"_blank\"><u>reports<\/u><\/a> that adult-use states collected a truly eye-watering $5.9 billion in tobacco taxes last year, about double their total pot tax revenue. California accounts for the lion&#8217;s share of this income, with nearly $2 billion in cigarette taxes levied. Arizona, Colorado, and Washington are the only states that currently make more money from weed taxes than from cigarette taxes.<\/p>\n<p>Davis recommended that any state that wants to maximize its weed tax revenues should make it as easy as possible for entrepreneurs to start their own weed businesses. \u201cIf their priority becomes to maximize revenue, the way you do that is to allow for a large number of retail outlets and allow for delivery and discourage local bans on cannabis shops,\u201d <a href=\"https:\/\/thehill.com\/news\/state-watch\/3462636-pot-taxes-surpass-those-from-alcohol-in-legalization-states\/?rl=1\" rel=\"nofollow noopener\" target=\"_blank\"><u>he told <\/u><u><em>The Hill<\/em><\/u><\/a>. \u201cYou can tax cannabis quite heavily and raise a significant amount of revenue. Washington is raising more than any other state [per capita] because it has a high tax rate.\u201d<\/p>\n<p>High tax rates are great for state budgets &#8211; and many states are putting this income to <a href=\"https:\/\/merryjane.com\/news\/illinois-is-using-weed-tax-revenue-to-expunge-former-pot-convictions\" target=\"_blank\" rel=\"noopener\"><u>good use<\/u><\/a> &#8211; but excessive taxes could also destroy the industry. Smaller weed businesses in high-tax adult-use states are <a href=\"https:\/\/merryjane.com\/news\/37-of-legal-weed-businesses-say-they-cant-make-a-profit-survey-finds\" target=\"_blank\" rel=\"noopener\"><u>struggling to survive<\/u><\/a>, and some <a href=\"https:\/\/merryjane.com\/news\/california-cities-are-granting-tax-relief-to-weed-businesses-while-state-fails-to-act\" target=\"_blank\" rel=\"noopener\"><u>California businesses<\/u><\/a> even planned a <a href=\"https:\/\/merryjane.com\/news\/cas-cannabis-industry-is-considering-a-financial-revolt-in-protest-of-tax-regime\" target=\"_blank\" rel=\"noopener\"><u>tax revolt<\/u><\/a> to protest the state tax regime. Extreme taxes also end up making legal pot <a href=\"https:\/\/merryjane.com\/news\/la-is-literally-the-worst-place-to-buy-legal-weed-thanks-to-exorbitant-sales-taxes\" target=\"_blank\" rel=\"noopener\"><u>far more expensive<\/u><\/a> than illicit bud, which helps the black market stay in business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Adult-use states as a whole collected around $3 billion in cannabis excise taxes last year, exceeding the $2.5 billion those same states made in alcohol taxes.<\/p>\n","protected":false},"author":2,"featured_media":55175,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3036],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Arizona Makes Three Times More Cash From Weed Taxes Than From Booze and Tobacco Combined - Merry Jane<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/merryjane.com\/news\/arizona-makes-three-times-more-cash-from-weed-taxes-than-from-booze-and-tobacco-combined\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arizona Makes Three Times More Cash From Weed Taxes Than From Booze and Tobacco Combined - 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