Connecticut Officials Release Updated Marijuana Tax Revenue Projections For Next Five Years

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Connecticut officials have released projections for marijuana tax revenue the state is expected to generate over the next five years after retail sales launch. The state Office of Fiscal Analysis published an infographic illustrating the anticipated revenue timeline. Connecticut stands to earn $4.1 million in state and local cannabis taxes for the 2022 fiscal year, the report says, but that rises to a yearly haul of $73.4 million by the 2026 fiscal year. The nonpartisan office’s estimates fall significantly short of past projections that were touted by supporters in recent years as they pushed for legalization. But lawmakers have said repeatedly that the point of enacting the reform—which took effect on July 1—wasn’t to make money but was principally about ending racially discriminatory prohibition enforcement and promoting civil liberties. Certain provisions of the state’s marijuana law were made immediately effective this month such as allowing adults 21 and older to possess up to 1.5 ounces of cannabis. However, Gov. Ned Lamont (D) said other provisions like retail sales will take additional time to roll out. That’s largely why the projections for next year’s tax revenue are so low. In contrast, Illinois sold about $670 million in cannabis and took in $205.4 million in tax dollars last year. For the first two fiscal years covered in the new Connecticut analysis, it says all of the revenue will support administrative costs via the general fund. After that, 15 percent will go to the general fund, with the remaining revenue being divided between social equity (60 percent) and substance misuse treatment programs (25 percent). As regulators work to stand up the adult-use market, they’ve launched a website this month that provides up-to-date information on the new law. “Passage of this new law was an important step forward in ending the failed war on drugs…

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Source : Connecticut Officials Release Updated Marijuana Tax Revenue Projections For Next Five Years

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