Massachusetts Collects More Taxes on Marijuana than Alcohol

Excise taxes on adult recreational cannabis surpassed alcohol in Massachusetts for the first time.

The commonwealth collected $74.2 million in marijuana excise tax through December 2021, WCVB reported. In comparison, alcohol collected $51.3 million.

In September of 2021, the Cannabis Control Commission reported that Massachusetts cannabis businesses passed $2 billion in gross sales less than three years after the first two adult-use stores opened in the Bay State.

“This number also underscores the entire agency’s tireless efforts, particularly those of our hardworking staff, to thoughtfully regulate a safe, accessible, and effective adult-use marketplace that keeps critical tenets of our mission – public health, public safety, and equity, among others – front of mind,” Commission Executive Director Shawn Collins said.

In addition to the 10.75% excise tax on recreational use, there is a 6.25% state sales tax on cannabis in Massachusetts and a local tax that can reach up to 3%. According to the Associated Press, this added up to $208 million in total tax revenue during the last fiscal year.

In 2019, 22 retailers made $444.9 million in sales from recreational marijuana use in Massachusetts, according to the Cannabis Control Commission. In 2020, despite two months of closures forced by COVID-19, retailers generated a total of $702 million and by September 2021, the commission reported that retailers had generated $844 since the start of the new year.

========