Massachusetts is set to receive a large influx of annual tax money from marijuana sales once the industry gets underway, according to the Department of Revenue.
According to the department, the state will receive up to $172 million in annual tax revenue from legal marijuana sales by 2020. Voters legalized cannabis last year, but cannabis retail outlets aren’t expected to be open until next year.
The numbers are based on a 12% tax rate; this includes the standard 6.25% sales tax, a 3.75% excise tax and a 2% city-wide tax. Nevada lawmakers may still raise this to a higher tax rate, however. According to the department, if lawmakers raise the excise tax from 3.75% to 5%, the state would garner an additional $11 million in annual taxes.
Read moreMassachusetts to Garner Up to $172 Million in Annual Taxes From Marijuana Sales By 2020