Cannabis Briefs for April 12, 2022
April 12, 2022
•Recreational cannabis sales in Illinois rebounded in March after two down months. Following a January and February in which monthly sales dipped below $120 million for the first time since last June, sales jumped in March to $131 million, the second-best figure on record. Bested only by December’s $138 million, March saw Illinois residents purchase $90.4 million of cannabis and visitors contribute another $40.6 million. Just over 3 million discrete cannabis items were sold last month.
•Adult-use cannabis sales generated more than $3.7 billion in tax revenue across the U.S. last year, according to a new report from the Marijuana Policy Project. That figure represents a 34% uptick from 2020. As of last month, the total tax revenue collected from recreational sales since they began in 2014 stands at $11.2 billion. California was the biggest contributor last year at nearly $1.3 billion, followed by Washington at $630.9 million. Other standouts include Illinois, which contributed $424.2 million, Colorado at $396.2 million, Massachusetts at $227.5 million, and Michigan at $209.9 million.
•New York lawmakers sent governor Kathy Hochul a budget proposal that would allow cannabis businesses to claim standard tax deductions despite cannabis prohibition at the federal level. The provision is a potential gamechanger for the state’s forthcoming cannabis industry. In other states, cannabis entrepreneurs are prohibited from deducting business expenses, among other forbidden deductions, by the notorious 280E clause, which prohibits those deductions on the grounds that cannabis is illegal at the federal level. A state-level workaround would go a long way to increasing margins and driving profitability for New York operators.
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Tagged : cannabis, Illinois sales, Marijuana Policy Project, New York, US sales
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