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What Massachusetts Can Gain from Taxing Marijuana

Posted by Brian Greer on Thu, Dec 28, 2017 @ 04:35 PM

This past year, Massachusetts became the latest of few states that have decided to legalize marijuana.  Though the ship hasn't totally sailed on selling, it is no longer viewed as a crime and recreational smoking is legal.  With that said, the question still remains for the state: how much do they stand to profit from taxing?  According to the Boston Globe"Taxes on recreational marijuana sales could net the state between $44 million and $82 million in the next fiscal year, according to a new analysis by the Massachusetts Department of Revenue."

The projection was unveiled this past Wednesday by revenue commissioner Christopher Harding in testimony before state legislators.  The wide gap in the projection reflects significant uncertainty as to how the marijuana industry will initially grow in Massachusetts.

The primary concern about growth is due to a lack of clarity regarding the Cannabis Control Commission and how many firms will be able to gain approval from them come July 1, 2018 -- when selling marijuana officially becomes legal for state dispensaries.  Adding to the confusion, several towns have already enacted boundaries regarding selling and growing, with several others still awaiting a vote. 

Though controversial, many people have reported glowing effects of what marijuana has done for their health and the aid it has provided.  The marijuana debate is a country wide discussion. It will continue to take time to see how much can really be made from this seemingly soon to be, booming industry.

Topics: sales tax news, Massachusetts sales tax