Want to Buy Marijuana Online? Here’s How It Boosted State Budgets by $20B
Dec
People who buy marijuana online have changed state budgets in a big way. With over $20 billion in tax revenue from current sales, this has become a major economic driver for many states. A big part of this success? The convenience of buying marijuana online. Ordering virtually makes it easy for more people to access safe and authentic products, boosting tax income even further.
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Key Takeaways:
- The Marijuana Policy Project released a report showing that cannabis sales have generated over $20 billion in tax revenue.
- The economic benefits of this sale fund essential regional programs and create hundreds of thousands of jobs and new businesses.
- Twenty-four states have legalized cannabis for adults 21 and older, with 23 implementing regulated and taxed markets.
States Surpass $20 Billion in Marijuana Tax Revenue
The US has now generated over $20 billion in tax revenue from recreational commerce since the first markets opened a decade ago, per a recent report from the Marijuana Policy Project (MPP). In 2023 alone, many states collected over $4 billion (an all-time high annual income).
Despite income declines in major markets like Colorado and Nevada, markets in Delaware and Ohio keep tax income rising as regulation expands.
2023 Marijuana Tax Revenue
A look at the profit totals from various provinces in 2023:
| Alaska | $28,097,114 |
| Arizona | $257,929,322 |
| California | $1,082,452,368 |
| Colorado | $256,756,467 |
| Connecticut | $24,613,367 |
| Illinois | $552,166,729 |
| Maine | $35,593,347 |
| Maryland | Approximately $29,880,000 |
| Massachusetts | $263,488,752 |
| Michigan | $473,303,560 |
| Missouri | $105,941,225 |
| Montana | $51,636,106 |
| Nevada | $178,135,259 |
| New Jersey | $45,083,223 |
| New Mexico | $67,440,312 |
| New York | Approximately $21,000,000 |
| Rhode Island | $12,621,982 |
| Oregon | $148,133,667 |
| Washington | $532,516,060 |
| Vermont | $21,642,857 |
| Overall Total | Approximately $4,188,431,717 |
Some recently reached commerce milestones:
- Massachusetts: Over $7 billion in combined medical and recreational growth since 2018.
- New Mexico: More than $1 billion growth since launching adult use in 2022.
- Missouri: $1.4 billion during its first full year.
TD Cowen, a multinational investment firm, projects that the progress will reach $37 billion by 2027, partly driven by younger adults choosing potency over alcohol.
How Marijuana Permission Transformed State Budgets
The decision to legalize weed had a powerful impact on regional finances. This revenue stems from three main sources:
- Excise Taxes: Special taxes on weed products based on potency (THC levels) or weight. Excise taxes are drivers of revenue for territories with high rates, especially in California and Colorado.
- Sales Taxes: Cannabis dispensary selections are also subject to standard sales taxes, just like other retail goods. This adds a steady, predictable income stream as purchases increase each year.
- Licensing Fees: For any business to operate, provinces require substantial licensing fees. This includes cultivation licenses, retail licenses for dispensaries, and distribution permits, all contributing to regional budgets.
Role of Online Sales in Driving Revenue Growth
Digital commerce has become a major factor in the growth of revenue. These services make it easier for users to buy marijuana online. This convenience attracts a wider audience, including those who might not visit physical stores, significantly increasing commerce volume.
Consumers are now able to:
- Browse through extensive selections on various dispensary sites.
- Compare prices, strains, and selections like edibles, THC, and CBD products.
- Make quick purchases with options for home delivery.
California reported an 8% growth in digital weed commerce last year alone. Colorado reports a steady increase in digital orders year over year. Oregon saw digital trades nearly double in 2018.
This shift is especially popular among younger adults, but older demographics are also embracing the convenience and safety of ordering at home.
Where Are the Weed Dollars Going?
When you order marijuana online, you’re fueling a major economic engine for many areas. The billions in profit fund key community services, strengthen local economies, and support jobs. This industry boosts both individual careers and broader business networks to help the nation build stronger, healthier, and more inclusive communities.
Supporting Education
Colorado allocates a significant portion of their income to improve education. These funds support new school construction, after-school programs, and essential learning resources to create stronger educational systems for the future.
Strengthening Public Health
In Illinois, liability dollars fund public health initiatives. This includes addiction recovery programs and mental health services so communities can have better support for wellness and rehabilitation.
Improving Infrastructure
California uses taxes to improve infrastructure, from roads to public facilities. These funds help repair essential infrastructure for safer and more accessible cities.
Promoting Social Equity
California and New York have set aside credit funds for social equity programs. These initiatives aim to support communities that previous drug laws disproportionately impacted.
Job Creation and Economic Impact
These trends have created hundreds of thousands of new jobs, boosting the local economy and opening career opportunities.
- Cultivation: From growers to botanists, jobs in cultivation ensure high-quality products and provide stable employment for agricultural workers.
- Processing and Manufacturing: Workers prepare and package various items, from CBD oils to THC edibles.
- Sales and Marketing: Dispensaries, retailers, and marketing agencies hire sales and promotional staff to connect products with customers.
- Delivery Services: As the weed industry grows, demand for delivery services has surged, creating roles for couriers and logistics experts.
- Hospitality and Tourism: This attracts tourists eager for a unique experience. It drives business for hotels, restaurants, and attractions in Colorado and Nevada.
Why Buy Weed Online?
When customers buy weed, they’re purchasing from dispensaries that ensure all the best cannabis products undergo lab testing and are compliant with regulations. This guarantees safer and quality-controlled selections.
This is a win-win: customers get safer options, and regions get to regulate and tax these purchases effectively.
Final Thoughts
Accepting weed has funneled billions into budgets, and the option to buy cannabis online has amplified this growth. States gain funding for schools, health, and infrastructure while consumers enjoy safe, convenient access to quality products like CBD oils and edibles. Each purchase not only supports personal choice but also fuels the nation’s progress.
You can contribute to the growth of your state by browsing GetLoud Cannabis to shop for quality products and brands.
Frequently Asked Questions
How do I order weed online?
Visit a dispensary’s website, create an account, browse the products, add items to your cart, and proceed to checkout. Follow the instructions to complete your purchase and arrange for delivery or pick-up.
What should I consider before buying weed online?
Look for customer reviews, product descriptions, and lab test results for quality assurance. Consider the pricing, delivery options, and whether they offer promotions or discounts.
Does the tax vary based on the potency of the product?
Authorities calculate a potency-based tax based on the level of tetrahydrocannabinol (THC), the primary psychoactive compound in cannabis. This system is similar to state alcohol taxes, where higher rates apply to products with higher alcohol concentrations—for example, states charge liquor at a higher per-gallon rate than wine and wine at a higher rate than beer. States like Connecticut, Illinois, and New York incorporate THC levels in their calculations.