Vermont has a 14% excise tax and a 6% sales tax on marijuana. The state has generated $5.36 million in revenue during fiscal year 2023, broken down to $3.85 million for the excise tax and $1.51 million in sales tax.

By Brent Addleman | The Center Square

Marijuana tax revenue is growing everywhere in New England, except in New Hampshire.

The Granite State is the only governing body in the region still enacting marijuana prohibition for adults aged 21 and over. Maine, Massachusetts, Rhode Island, Vermont, and Connecticut are raking in revenue from active sales markets. Canada legalized marijuana in 2018.

Legalization in New Hampshire is being debated in the Senate; House Bill 693 was ratified April 6. The bill would legalize marijuana for adults over 21 and establish a market.

Tax Foundation reported that 21 states had legalized marijuana, which the federal government still lists as a Schedule I drug. In its report, Tax Foundation said that in states that have legalized adult-use marijuana, they are not enforcing federal restrictions. Delaware passed legislation last week to legalize marijuana.

As previously reported by The Center Square, sales rose in New England last year, with Massachusetts being the first New England state to legalize marijuana in 2018. Rhode Island entered the market late in 2022, and Connecticut opened it in January.

Sales are growing in New England, along with tax revenues generated from licenses, fees, excise, and sales taxes pouring into the state’s coffers each month.

Tax Foundation reported that sales prices have been volatile but appear to drop as more supply chains enter the market. The group said that while prices are falling, it suggests that states move to ad valorem taxes based on the weight of raw flower and incorporate a scale for taxes on edibles based on THC content.

On Dec. 1, Rhode Island opened its market, Tax Foundation reported, with a 10% excise tax on sales. Local municipalities can tag an additional 3% excise tax on those sales.

In a report released on March 23 by the Department of Business Regulation, Rhode Island recorded $30,965,333.50 in sales and culled $3,096,533.35 in tax revenue. An additional $928,960 in revenue would be distributed to local municipalities that chose to participate in the local tax.

In Maine, there is a 10% excise tax, in addition to taxes of $335 per pound of flower; $94 per pound of trim; $1.50 per immature plant or seedling; and 3 cents per seed.

Maine has $45,314,673 in sales, with $16,622,537 coming in March. Maine has culled $4,531,467.30 in tax revenue this year.

Massachusetts places a 10.75% excise tax on retail sales, the state’s 6.25% sales tax, and a local 3% option tax for municipalities.

Through April 2, the adult-use marijuana market had $373.11 million in business this year and $4.35 billion in sales since November 2018. For the year, the market has generated $40 million in excise tax revenue for the state and $23,319,375 in sales tax. The local option brought in $11 million in tax revenue.

Vermont has a 14% excise tax and a 6% sales tax on marijuana. The state has generated $5.36 million in revenue during fiscal year 2023, broken down to $3.85 million for the excise tax and $1.51 million in sales tax.

In Connecticut, taxes on marijuana are set by the THC content in flower, edibles, and non-edible products. The state carries a $0.00625 tax per milligram of THC in flower; $0.0275 per milligram of THC in edibles; and $0.09 per milligram of THC in non-edibles. The state also assesses a 6.35% sales tax and a 3% tax in the municipalities where the products are purchased.

In 2023, Connecticut saw $21,692,292.40 in sales, according to the Department of Consumer Protection. That translates into $2,028,229.34 in revenue from state and local sales taxes. As March data is unavailable, the state also had $1,213,285.34 in taxes assessed by THC content in January and February.