According to the latest budget proposal, the general fund will receive $50.7 million recreational tax revenue from cannabis sales in the 2024 fiscal year and $57.7 million in 2025.
Which vice generates more tax revenue, marijuana or alcohol? It depends on the state, the neighborhood’s fashion, and the applicable taxes. But now that marijuana is legal, it’s not surprising that Montana expects tax revenue from marijuana to increase over the next years while tax revenue from wine and beer to stay the same.
According to updated revenue forecasts from Governor Greg Gianforte’s budget proposal, alcohol taxes should slightly increase while revenue from cigarette taxes should decrease, according to Daily Montana.
Although it will only make up a small portion of the total revenue collected for the general budget, cannabis is expected to make considerable contributions to state coffers.
The budget proposal said that $11.8 billion in total stimulus expenditure was intended to people, businesses, and government organizations in Montana.
According to the latest budget proposal, the general fund will receive $50.7 million recreational tax revenue from marijuana sales in the 2024 fiscal year and $57.7 million in 2025.
Tax income of $30.7 million is anticipated in 2023, the first full year of the Treasure State’s adult-use cannabis program implementation. The budget proposal also predicts that marijuana sales will generate $61.1 million in gross revenue in 2023 and $91.9 million in 2025.
Montana’s Cannabis Developments
In the November election, the initiative received support from almost 58% of voters. The initiative made it lawful for adults over 21 to possess and use up to one ounce of cannabis or eight grams of marijuana concentrate.
Additionally, on January 1, 2021, retail marijuana sales for people 21 and older began in Montana.
Up until September 2022, marijuana sales in Montana, a state with 1.1 million citizens, totaled more than $201 million ($133 million from sales for adult use). The state has received roughly $29.3 million in tax income as a result of those sales.
