Minnesota’s Hemp-Derived THC Market Generates Over $10 Million in Taxes

NEW YORK- The Minnesota Department of Revenue reports that the state has generated $10,022,635 in taxes from hemp-derived THC products since the market launched nearly a year ago. This follows the state’s legalization of adult-use cannabis last year, with the full market expected to launch in 2025.

In May alone, the state collected $1,217,450 from 1,873 tax-paying businesses. With monthly tax revenues now exceeding $1 million, and a 10% tax rate on hemp-derived cannabinoid products, officials estimate the annual market value at approximately $130 million.

Some industry operators believe this figure may be an underestimation. Shawn Weber, president of the Minnesota Cannabis Growers Cooperative and co-owner of Crested River Cannabis, expressed that the numbers seemed low based on his knowledge of the market.

Under Minnesota’s low-potency hemp regulations, companies selling these products must register with the Department of Health’s Office of Medical Cannabis. This office recently merged with the Office of Cannabis Management.

Twenty percent of the state’s hemp-derived tax revenues are allocated to local governments, with counties and cities sharing the funds based on the number of licensed cannabis businesses in their areas.