Marijuana Revenue > Alcohol Revenue

What is happening? The Institute on Taxation and Economic Policy says revenues from legal marijuana sales, state-level cannabis excise taxes totaled $2.9 billion in 2021, compared to about $2.4 billion from similar taxes on alcohol, or profits from state liquor stores.

Why is this important? Alcohol revenue proponents say they are the larger industry and when you consider all their taxation levels, their revenue is greater. However, marijuana revenue is seeing larger increases in revenue, such as the 33% increase in revenue in the two previous years.

How will this be important? While both cannabis and alcohol are sin taxes, the largest source for sin tax revenue remains tobacco. To compare the same states that have 2021 cannabis excise taxes, those same 11 generated tobacco revenue of $5.9 billion over the same time period.

The Institute on Taxation and Economic Policy | Cannabis Taxes Outraised Alcohol by 20 Percent in States with Legal Sales Last Year