In coming weeks, Massachusetts is set to pass $4 billion in recreational cannabis sales following a milestone made in May 2022 of surpassing $3 billion in gross sales.
Fast-Growing Recreational Sale
Recreational cannabis became legal in Massachusetts in December 2016 after voters approved Question 2, which allowed for the purchase and use of cannabis in the state for individuals aged 21 and older. Two years after legalizing cannabis, Massachusetts made history by being the first on the East Coast to open recreational marijuana stores.
The state has seen a total of $3.9 Billion in recreational and medical marijuana sales since the initial sales on November 5, 2018, through December 18, 2022. Massachusetts surpassed the $3 billion milestone in May 2022, and just a couple of months since then, the state is already looking at exceeding $4 billion in sales. The Massachusetts Cannabis Control Commission reported $1.4 billion in adult-use sales in the state starting from the beginning of 2022 through December 18, 2022. They also saw $260.2 million in medical marijuana sales over the same period. The state has seen a significant increase in sales in just a few months, and it is expected to continue to see rapid growth in the coming years.
Tax Revenue From Sales
The high number of sales has provided substantial tax revenue to the state. From the beginning of 2022 through December 18, Massachusetts has generated $88.75 million due to the state’s 6.25 percent sales tax on marijuana. In addition, the state generated $152.65 million from its 10.75 percent excise tax on recreational cannabis. Up to $42.6 million could have been generated through 3 percent local use option taxes.
The state’s retail market for recreational cannabis has been open for under four years now, and it’s already about to surpass $4 billion in sales—just months after reaching $3 billion in May. This shows that legalizing adult-use marijuana was an excellent decision for the state, especially considering how much revenue it brings in.
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