Published: 12/four/2019 11:38:24 PM
BOSTON — Massachusetts tax collectors are expecting to haul in in between $93 million and $173 million in legal marijuana income this existing price range year and could gather as significantly as $189 million in the subsequent price range year, Income Commissioner Christopher Harding told lawmakers Wednesday.
Soon after collecting $22 million in state tax income from marijuana sales in fiscal 2019 — which ended in June and integrated the initial 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 commence in July, Harding mentioned, the state can count on to see in between $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 enterprise,” Harding told the Joint Approaches and Suggests Committee at the annual consensus income hearing. “However, from a income point of view, the legal marijuana market place is not but totally created, and uncertainty remains about the price at which the market place will develop and how rates 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 consist of only the state share of these tax revenues.
Given that the initial 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 retailers generated $393.7 million in gross sales through the initial complete year of operations, the Cannabis Manage Commission announced final month.
The income commissioner mentioned the state is operating “a small bit shallow on [ marijuana tax] revenues, year to date” and noted a slight decline in sales in the most recent release of information. Although he deferred an explanation of the decline to the CCC, Harding mentioned that one particular of the solution kinds 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. Although 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 individuals.
Concentrates, such as vape cartridges, accounted for roughly 20 % of all legal marijuana solution purchases in Massachusetts, primarily based on a one particular-week snapshot supplied by the CCC in September.