Legal Cannabis Sales in Washington Surge; 4/20 Shatters Tax Revenue Record
- Washington is on track for another record year of medical and adult use cannabis tax revenues fueled by strong growth in consumer demand.
- At the pace of current sales, Washington will earn over $100 million in cannabis excise taxes* between January and April 2017, up from $66 million over the same period in 2016.
- By late April, excise tax revenues were already up 59% from the previous year.
- April 20, 2017, was the single highest revenue day in Washington, grossing over $2 million in tax revenue, an 88% increase from the previous year.
- One reason for the increased revenue is the state’s decision to harmonize the adult use and medical programs in July 2016, which included a rule change that applied the 37% excise tax to previously exempt medical use sales.
- The year-over-year growth in Washington underscores the tax revenue generating potential presented by legal cannabis, leading an increasing number of states to consider advancing adult use legalization initiatives.
*The cannabis excise tax rate in Washington is 37% which is applied to both medical and adult use sales. These revenues do not include the state sales tax which is applied only to adult use sales.