420 with CNW — Cannabis Taxes Are Underperforming Expectations in Several States
Approximately one-half of the U.S. population resides in states where recreational cannabis is legally accessible. Furthermore, 11 additional states, including Florida and Wisconsin, are contemplating legalization this year. One of the primary arguments for the legalization of cannabis is the potential for increased state tax income. However, the amount of revenue generated depends on the regulatory decisions made by each state regarding the cannabis industry and the method of taxation employed. Taxes on recreational cannabis typically revolve around factors such as potency, price, weight and quantity, similar to the taxation of other “sin products” such as alcohol and tobacco. Taxation…