FOR THE FIRST TIME, MASSACHUSETTS MARIJUANA EXCISE TAX REVENUE EXCEEDS ALCOHOL

Excise taxes for marijuana sold for adult recreational use exceeded alcohol excise taxes for the first time in Massachusetts, as marijuana sales reached $2.54 billion, according to the Cannabis Control Commission.

Halfway through the fiscal year, Massachusetts collected $74.2 million in marijuana excise tax through December 2021, compared to $51.3 million in alcohol excise taxes. The transition from medical to recreational marijuana use typically leads to a doubling or even tripling of tax revenues.

The excise tax of 10.75% on recreational marijuana is only about half of the total tax revenue being collected for cannabis. There is also a 6.25% state sales tax, plus a local tax of up to 3%. It all added up to $208 million in total tax revenue last fiscal year.