Published: 12/four/2019 11:38:24 PM
BOSTON — Massachusetts tax collectors are expecting to haul in amongst $93 million and $173 million in legal marijuana income this existing price range year and could gather as a lot as $189 million in the subsequent price range year, Income Commissioner Christopher Harding told lawmakers Wednesday.
Following collecting $22 million in state tax income from marijuana sales in fiscal 2019 — which ended in June and incorporated the 1st eight months of legal sales — Harding mentioned marijuana revenues in the existing fiscal year are “fairly close to” the anticipated variety,. For the price range year that will start in July, Harding mentioned, the state can count on to see amongst $102 million and $189 million in pot tax income.
“We count on that revenues will continue to accelerate as retail outlets are licensed and open for company,” Harding told the Joint Methods and Suggests Committee at the annual consensus income hearing. “However, from a income viewpoint, the legal marijuana industry is not however completely created, and uncertainty remains about the price at which the industry will develop and how costs will adjust more than time.”
Cannabis sales in Massachusetts are topic to a 10.75 % excise tax and the state’s six.25 % sales tax, as properly as a regional tax of up to three %. The Division of Revenue’s estimates include things like only the state share of these tax revenues.
Given that the 1st two marijuana retailers opened in Northampton and Leicester on Nov. 20, 2018, far more than 30 far more outlets have opened, and the state’s licensed shops generated $393.7 million in gross sales throughout the 1st complete year of operations, the Cannabis Handle Commission announced final month.
The income commissioner mentioned the state is operating “a tiny bit shallow on [marijuana tax] revenues, year to date” and noted a slight decline in sales in the most current release of information. Even though he deferred an explanation of the decline to the CCC, Harding mentioned that one particular of the item varieties that saw a drop was concentrates.
“You could equate these to some of the vapes and that is the category that appears to have taken the hardest hit,” he mentioned.
In September, Gov. Charlie Baker banned the sale of all vaping items, such as cannabis vapes. Even though a court challenge eroded some of the ban as it connected to cannabis items, the CCC took its personal action to impose a quarantine of all marijuana vaping items except these that vaporize flower for healthcare sufferers.
Concentrates, such as vape cartridges, accounted for roughly 20 % of all legal marijuana item purchases in Massachusetts, primarily based on a one particular-week snapshot offered by the CCC in September.