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 considerably 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 incorporated the 1st eight months of legal sales — Harding stated 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 stated, the state can anticipate to see in between $102 million and $189 million in pot tax income.
“We anticipate that revenues will continue to accelerate as retail outlets are licensed and open for organization,” Harding told the Joint Methods and Implies Committee at the annual consensus income hearing. “However, from a income point of view, the legal marijuana industry is not but completely created, and uncertainty remains about the price at which the industry will develop and how costs will modify 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 neighborhood tax of up to three %. The Division of Revenue’s estimates involve only the state share of these tax revenues.
Given that the 1st two marijuana retailers opened in Northampton and Leicester on Nov. 20, 2018, much more than 30 much more outlets have opened, and the state’s licensed shops generated $393.7 million in gross sales for the duration of the 1st complete year of operations, the Cannabis Handle Commission announced final month.
The income commissioner stated 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 up-to-date release of information. Although he deferred an explanation of the decline to the CCC, Harding stated that one particular of the item sorts 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 stated.
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 associated to cannabis items, the CCC took its personal action to impose a quarantine of all marijuana vaping items except these that vaporize flower for health-related individuals.
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 supplied by the CCC in September.