July broke the monthly record for recreational marijuana sales in Rhode Island.
According to the Rhode Island Department of Business Regulations, there was $8.04 million worth of recreational marijuana sold in July, in addition to $2.04 million in medical marijuana sales. Although the combined $10.08 falls narrowly short of the record-setting $10.20 million sold in December, the $8.04 million in recreational marijuana sold is a new monthly record for the state.
This brings the total sales for 2024 to $68,597,681, with an average transaction amount of $37.02. Last year, the total sales amounted to $107,816,615, contributing approximately $15 million in tax revenue.
Rhode Island’s recreational marijuana law, enacted in 2021, allows adults 21 and over to purchase up to an ounce of marijuana from licensed retailers and cultivate up to 12 plants for personal use. Recreational marijuana is subject to a 10% excise tax, a 7% statewide sales tax, and up to a 3% local tax. Medical marijuana patients are exempt from the excise tax but must pay the 7% sales tax. The bulk of tax revenue is distributed to the state’s general fund.
Marijuana tax revenue is distributed among several key areas. A significant portion of the revenue is directed to the state’s General Fund, supporting various public services and programs. Additionally, funds are allocated to the Social Equity Assistance Fund, which aids communities disproportionately affected by past marijuana prohibition policies, providing economic development, job training, and other social equity initiatives. Municipalities that host marijuana establishments receive a share of the revenue to cover regulatory and oversight costs. Public health and safety programs also benefit, with funding directed toward substance abuse prevention and treatment, as well as public safety measures related to marijuana regulation. Finally, a portion of the revenue is used to cover administrative costs associated with regulating and overseeing the marijuana industry.
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