Legal recreational marijuana sales began in Q1, 2018 in California, and since that period the state has garnered billions in new tax revenue.
According to data released by the California Department of Tax and Fee Administration, there has been $19,262,487,673 in marijuana and marijuana products sold between Q1, 2018 and Q3, 2022. This has resulted in $4,397,112,676 in new tax revenue for the state.
A slight majority of this tax revenue came from the state’s excise tax on marijuana, followed by revenue earned from the state’s standard sales tax. A smaller, but still considerable portion of the revenue was garnered from California’s marijuana cultivation tax.
Q3, 2021 was the most profitable quarter thus far, with $361 million in marijuana taxes brought in from a little over $1.5 billion in sales.
In the most recent quarter, Q3, 2022, there was $242 million in marijuana taxes garnered from $1.27 billion in sales. Although this is a noticeable decrease from the prior year, it’s likely attributed at least in part to a move away from pandemic living.
A full quarter-by-quarter breakdown of marijuana sales and tax revenue in California can be found by clicking here.
