August marijuana sales in Rhode Island broke the previously monthly record.
In Rhode Island, there was $8.23 million worth of recreational marijuana sold in August, in addition to $2.01 million in sales made by medical marijuana patients, according to the Department of Business Regulations. The combined $10.25 million is a new monthly record for the state, which legalized marijuana in 2021. The previous monthly record was $10.20 million sold in December 2023.
The year-to-date total for marijuana sales is now approximately $79 million, spread across 2,142,155 different transactions. The average transaction amount was $36.83.
Last year, the total sales amounted to $107,816,615, contributing approximately $15 million in tax revenue.
Rhode Island’s recreational marijuana law, passed in 2021, permits adults 21 and older to purchase up to an ounce of marijuana from licensed retailers and grow up to 12 plants for personal use. Recreational marijuana sales are taxed with a 10% excise tax, a 7% statewide sales tax, and up to 3% in local taxes. Medical marijuana patients are exempt from the excise tax but must still pay the 7% sales tax. The majority of the tax revenue is directed to the state’s general fund.
Marijuana tax revenue is allocated to several key areas. A large portion supports the state’s General Fund, which finances various public services and programs. Part of the revenue goes to the Social Equity Assistance Fund, which helps communities disproportionately affected by previous marijuana prohibition, providing economic development, job training, and other social equity initiatives. Municipalities that host marijuana businesses receive a share to cover regulatory and oversight costs. Public health and safety programs, including substance abuse prevention and treatment, also benefit from the funds. Additionally, a portion is used to cover administrative costs related to regulating the marijuana industry.
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