California Total Cannabis Tax Revenue Approaching $4 Billion

California has earned $3.76 billion in total cannabis taxes since the state’s legal market launched in January 2018.

Full story after the jump.

California cannabis sales have generated $3.76 billion in total tax revenue since legalization took effect in January 2018, according to a California Department of Tax and Fee Administration (CDTFA) report.

The report published last week found that during the first quarter of 2022, the state had earned $293.54 million including $156.36 in excise taxes, $32.68 million through the cultivation tax, and $104.50 million in sales tax revenues. The first-quarter earnings this year were slightly lower than fourth-quarter earnings in 2021, which reached $316.59 million.

Since the market’s launch, California‘s total cannabis tax revenue of $3.76 billion has included $1.91 billion in excise taxes, $467.75 million in cultivation taxes, and $1.38 billion in sales taxes.

The tax totals reported by CDTFA do not include outstanding returns or any locally imposed taxes by cities and/or counties.

A bipartisan bill containing tax credits for licensed cannabis dispensaries passed the California state Senate on Thursday, moving on to the Assembly for policy hearings.

Additionally, California Gov. Gavin Newsom (D) revealed a tax proposal earlier this month that would eliminate the state’s cannabis cultivation tax but seek to make up the difference by increasing excise taxes after several years. Meanwhile, a recent Reason Foundation report found the state could double its cannabis tax revenues by eliminating its cultivation tax entirely, which would help licensed companies compete with the unregulated market’s lower prices, the authors noted.

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