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The report found that Colorado and Washington earned more tax revenue from marijuana than from alcohol or cigarettes in fiscal 2022.

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Colorado and Washington state accounted for more revenue from marijuana sales than from alcohol or cigarettes in fiscal 2022, according to a new report.

Eight other states saw more cannabis tax revenue than cigarettes, while Nevada got more marijuana than alcohol.

The analysis, published by the Center for Tax Policy on Wednesday, provides a comprehensive overview of various tax models, revenue data and discussions about the most effective tax systems in states that have legalized cannabis.

While it is difficult to draw generalizations about marijuana tax policy due to the mix of state and local tax models, researchers Richard Oxer and Nikhita Airi said, there are many trends that have emerged since jurisdictions began implementing legalization. One such trend is that as cannabis markets expand, the plant often outperforms alcohol and cigarettes in terms of revenue it generates for tax coffers.

In fiscal year 2022, Colorado collected $353.7 million in marijuana taxes, barely outpacing cigarette tax revenue but nearly seven times what the state generates in alcohol excise taxes.

Meanwhile, Washington state received $517 million in cannabis taxes, compared to about $490 million from alcohol and $380 million from cigarettes.

This is all the more important if we consider that tax revenue fell significantly in both Colorado and Washington from fiscal year 2021 to 2022, at -14 percent and -7 percent, respectively.

“Overall, the Colorado and Washington experience shows that a state can collect a significant amount of revenue from marijuana taxes and that this collection should often increase over time,” the report says.

The analysis further says, “Of all 11 states that collected cannabis tax revenue for the entire 2022 fiscal year, eight collected more cannabis tax revenue than alcohol tax.” In addition to Colorado and Washington state, Nevada has also brought in more marijuana than cigarettes.

while the Report Looking at full fiscal year totals, there are other examples of marijuana tax revenue that outperforms alcohol and tobacco in legal states during certain months or other time periods.

In Arizona, for example, The state generated more tax revenue To the general fund more legal marijuana sales than tobacco and alcohol sales sum in March.

Massachusetts Raising more tax revenue from marijuana than from alcohol, shows state data released in January. As of December 2021, the state earned $51.3 million in alcohol taxes and $74.2 million from cannabis halfway through the fiscal year.

Illinois has also experienced Cannabis tax beat wine for the first time Last year, with the state collecting about $100 million more marijuana is used for adults than alcohol through 2021.

In April, the Institute for Tax and Economic Policy released a file Analytics which looked at 11 states that legalized adult marijuana use and found that, on average, “revenues from cannabis outperformed alcohol by 20 percent” in 2021.

Advocates and stakeholders have promoted these data points. Not only does it emphasize the economic opportunity for legalization, but the hope is that providing regulated access to cannabis means that fewer people will take more dangerous drugs like alcohol and tobacco.

a A study published earlier this year Legalization of marijuana was found to be associated with reduced use of alcohol, nicotine, and non-prescription opioids among young adults.

More than double the number of Americans I think cannabis has a positive effect Consumers and society at large should say the same about alcohol, found a Gallup poll released last month.

This is in general Consistent with the results of a separate survey Released last March, it found that more Americans think it would be OK for people to switch to cannabis and drink less alcohol than those who think substitution would be bad.

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