Connecticut marijuana tax revenue expected to top $70M by 2025
The Connecticut Office of Fiscal Analysis says marijuana tax revenue is expected to bring in more than $70 million by 2025.
The projection for fiscal 2022 revenue is just $4.1 million, as the state has only recently legalized marijuana and the number of retailers remains low.
Numbers are projected to increase dramatically, however, with $26.3 million expected to come into the government in fiscal 2023. That’s the first full fiscal year marijuana sales will be legal in the state.
In 2024, tax revenue will be up to $44.6 million and 2025 will see $71.2 million in tax revenue, the projections state.
The highest projection comes in 2026, when $73.4 million in tax revenue will be collected, with $55.2 million for the state and $18 million for cities and towns.
Starting in 2024, 15 percent of the revenue will go to the state’s general fund, 60 percent will go toward social equity and innovation and 25 percent will go to prevention and recovery services.
The projections come as Connecticut legalized recreational marijuana for adults in June.
“People have been working on this for 10 years. It’s been a long time coming. I think we have a good bill that puts public health first,” Connecticut Gov. Ned Lamont (D) said at the time.
Marijuana sales in Arizona, which were only legalized months ago, are expected to hit $1 billion by the end of the year.
Senate Democrats in July revealed a bill to legalize marijuana on the federal level and expunge federal convictions for marijuana that involve nonviolent crimes.