State tax revenues generated from adult-use cannabis sales in Massachusetts has surpassed $150 million, The Commonwealth Dispensary Association (CDA) reported today.
The CDA is the largest and most active organization representing the cannabis business community in Massachusetts, including 80 percent of the adult-use and medical market.
The milestone, which encompasses adult-use sales dating back to November 2018, also includes nearly $30 million in tax revenue generated since the non-essential business shutdown was lifted on Memorial Day.
“This tax revenue milestone is a big moment for the Massachusetts cannabis business community because it shows not only the great demand for safe, regulated cannabis but also affirms the meaningful value this industry brings to cities and towns every single day,” said CDA President David Torrisi. “We know the hardship that COVID-19 has imposed on local and state budgets, and we are proud to help provide steady revenue streams that can hopefully reduce the need for difficult choices and maintain services. Although this nascent industry is still being built up and representation continues to be a work in progress, we’re extremely encouraged that its benefit to Massachusetts has been immediate and can support the Commonwealth in this time of need.”
Adult-use sales are subject to a 6.25 percent state sales tax, 10.75 percent state excise tax, and up to a 3 percent optional local tax for cities and towns, meaning every $10 of sales generates $2 of tax revenue. Since adult-use retailers opened in November 2018, the industry has accumulated $766 million in gross sales (through Aug. 4, 2020), of which $147 million was accumulated since Memorial Day, according to the Cannabis Control Commission.
In addition to generating tax revenue for host communities and the Commonwealth, the CDA noted that cannabis operators have played active roles funding COVID-19 relief efforts in their communities and supporting frontline healthcare workers. In March, the CDA entered into a partnership with the Massachusetts Health & Hospital Association. Through this initiative, CDA members produced thousands of gallons of hand sanitizer donated free of charge to Massachusetts hospitals, helping to replenish critical resources.