Massachusetts: State Expects To Make $300M From Marijuana Sales Tax By 2020
By Derrick Stanley
Recreational marijuana sales will start in Massachusetts in July 2018, but the state expects to collect as much as $172 million each year just from sales taxes.
The number was calculated by the Department of Revenue, which assumes marijuana will be taxed at a rate of 12 percent. A 3.75 percent excise tax is expected to be added to the state's 6.25 percent sales tax, and another 2 percent cities and towns can impose if they host a cannabis shop.
If the 12% total remains, Massachusetts would have the lowest marijuana tax rate of any state that has legalized recreational marijuana, except for Maine, where the tax rate is 10%.
Washington has the highest tax at 37%. Colorado has a 29% tax on marijuana, followed by Alaska at 25% and Oregon at 17 percent. Oregon municipalities can enact an additional tax of up to 3 percent with the approval of voters.