Cannabis Infused Products Boost Minnesota’s Tax Revenue

LOS ANGELES– The state of Minnesota has experienced a significant increase in tax revenue following the legalization of cannabis-infused products such as gummies and beverages. A recent report from the state Department of Revenue, as highlighted by CBS News, has shown that nearly $600,000 was collected last month alone from the sales of these products.

The impressive revenue came from 571 businesses that took part in the sale of cannabis items, which also comprised hemp-derived products enriched with THC. These items are now available at multiple retailers across the state.

Based on this initial data, projections suggest that annual sales from cannabis-infused products might very well exceed the $70 million mark. This would contribute a commendable $7 million annually to the state’s tax revenues.

One of the contributing factors to this revenue is the 10% gross receipts tax that the state’s legalization law imposes on THC-containing products. Interestingly, hemp products, which were legalized only a year ago, were not initially subjected to a separate tax, as mentioned in a report by MPR News.

However, while the sale of THC-infused products is blossoming, adult-use cannabis products are yet to make their debut in Minnesota. MPR News sources indicate that the wait for the introduction of these products might extend for another year or so. Once introduced, adult-use cannabis sales are predicted to generate around $42 million from the gross receipts tax in the initial two years. This figure is expected to almost triple to an astounding $120 million in the subsequent two years.

On the medical front, the sales of cannabis will remain untaxed. This provision will continue even after the launch of the adult-use market, ensuring that medical cannabis patients are not burdened with additional costs.

This new financial landscape underscores the economic potential of legalized cannabis products, showing promising revenue streams not only from traditional cannabis sales but also from its derivatives like gummies and drinks. As Minnesota waits for the rollout of the adult-use market, these figures indicate a promising future for the state’s economy and its stakeholders.