And the state is putting that money to good use.
Free Book Preview Cannabis Capital
Learn how to get your business funded in the Cannabis economy!
April 29, 2021 3 min read
Opinions expressed by Entrepreneur contributors are their own.
When Illinois lawmakers approved recreational cannabis in 2019, they did so hoping that it would prove popular enough to generate taxes to help offset state debt and fund a variety of programs. So far, Illinois residents have come through for them in a big way.
Recreational cannabis has proven extremely popular in Illinois. Even with the pandemic resulting in lockdowns for many months in 2020, marijuana taxes raked in $174.8 million for the state.
Since February, cannabis taxes have taken in more for the state than liquor taxes, according to the Illinois Department of Revenue. In February and March, cannabis taxes took in about $56 million, compared to about $39 million in liquor taxes.
As signs of the times go, that’s a significant one. And the same big growth in cannabis tax revenue is being seen across the country.
Illinois already ranks fifth for marijuana tax collections in the U.S.
One of the main reasons people in so many states are enjoying access to legal recreational marijuana is because politicians predict that cannabis taxes can become a significant revenue stream with tremendous upside.
A recent study on the amount of taxes brought in by each state shows that this prediction is correct. Here are the amounts of tax revenue for 2020 in states where adult-use marijuana is legal.
California – $1,031,879,926Washington – $468,810,000Colorado – $387,480,1110Oregon – $183,134,448Illinois – $174,884,334Nevada – $123,683,509Massachusetts – $81,734,083Michigan – $31,000,000Alaska – $21,213,296Maine – $1,552,332
Sales are expected to increase across the board in 2021. Also,