What have we learned from 5 years of cannabis taxation?
This month marks the five-year anniversary of the first legal, taxable sale of recreational cannabis in modern U.S. history. After decades of speculation about what taxing cannabis might mean for state and local coffers, the true revenue potential of cannabis taxes is finally coming into focus. And just in time. This year lawmakers in Connecticut, Delaware, Hawaii, Illinois, New Jersey, New York, Rhode Island, and Vermont will all be debating the taxation of recreational cannabis. A new ITEP report reviews the track record of recreational cannabis taxes thus far and offers recommendations for structuring cannabis taxes to achieve stable revenue growth over the long haul.