The Marijuana Policy Project, a non-profit organization research shows, that U.S. states that legalized marijuana sold $10.4 billion in taxes from marijuana companies between 2014 and 2021.
Tax revenue for the last year exceeded $3 billion. Additionally, the organization's research highlighted the fact that not all states have reported on budget indicators for the past few months.
The legalization of marijuana took part in 18 of the 50 states. Eight of them carried out this process in the last two years.
As for 7 more states, they don’t collect taxes. So the legalization is still in process. It’s possible to buy Wholesale CBD stateofmindlabs.com anytime without any additional issues.
Marijuana Policy Project showed, that states with legalized marijuana for adults got significant economic benefits from this process. Tax revenues are being channeled to much-needed government programs.
The state of Colorado took first place in the process of marijuana legalization. Here it spent almost $472 million on the improvement of its public school system. One more example is Washington state.
According to the statistics, from every billion cannabis taxes almost $600 million goes to health care programs. There are low-income families who opportunity for high-quality health insurance through these donations.
The statistics of Illinois state show that for the period from July to November, the tax revenue from the sale of marijuana was more than for the sale of alcohol.
20% of taxes from cannabis companies in this state were sent to mental health services. The category of low-income citizens got 25% of donations.
Yearly analytical research shows that the cannabis market has all the opportunities for permanent growth. In most cases the predictions exceed expectations. The United States nowadays is considered to be the most promising market.
The research predictions show that by 2030 it will be worth $100 billion. Global Market Insights show, that by 2025, the market for medical marijuana can reach $59 billion.
Federal legalization of marijuana use happened in Canada in 2018. As for the United States, the process of its legalization is actively underway. 35 US states, such as the District of Columbia, have legalized marijuana, and a few states are still thinking about it. There is can be used for medical reasons. In 17 states marijuana was legalized for adults for recreational use. No need to get a doctor's prescription.
Chuck Schumer, Senate Majority Leader, on March 31, said he supports marijuana decriminalization at the federal level. He is strictly against legalization. The difference in opinions led to an unstable situation, but there are numerous reasons for further development.
How the US cannabis market works
The use of marijuana in the United States is constantly under discussion at the federal level. The authorities, businesses, investors, and ordinary people, got a lot of problems because of that. And also the level of crime increased. That’s why companies have difficulties with expanding and starting to work in new states.
Cannabis has historically had a reputation for being harmful. The traditional way of consumption is smoking marijuana. Recently, however, foods and oils containing cannabidiol have been gaining momentum.
Cannabidiol is the main active natural compound found in cannabis plants. It is found in hemp, a type of cannabis. Cannabidiol does not have psychoactive properties. In everyday life, cannabis and medicines containing cannabidiol are simply called medical marijuana.
Products with cannabidiol are prescribed as a treatment for patients suffering from chronic pain or seizures. The hemp-derived cannabidiol market growth prediction is rather positive. New Frontier Data predicted that it will be changed from $390 million in 2018 to $1.3 billion by 2023.
U.S. Food and Drug Administration (FDA) made current regulations, according to which all drugs with cannabidiol need to get regulatory approval. It is also illegal under U.S. federal regulations to sell cannabidiol-containing foods or supplements.
Pew Research poll shows that 67% of Americans believe marijuana and cannabidiol use needs legalization. This is twice as much as in 2000 when only 31% of the population supported the legalization of marijuana. This is the highest marijuana approval rate in US history. Given the growing support of citizens, a change in cannabis legislation looks quite real.
Legalization of marijuana is beneficial to the US authorities thanks to taxes
US states have taken turns decriminalizing the use and possession of cannabis, with New Mexico the latest state to legalize recreational marijuana. On April 12, Gov. Michelle Lujan Grisham signed two bills into law. One bill legalizes and regulates the production, sale, and possession of marijuana, and the second automatically removes liability before the law from those convicted of marijuana-related crimes.
The legalization of marijuana takes place in approximately the same way in other states. Two weeks earlier, the use of cannabis was legalized by New York State. The legalization law of March 31 allowed the possession of up to 3 ounces of marijuana for people over the age of 21. It will eventually allow New Yorkers to grow marijuana for personal use.
How to invest in the cannabis market
The U.S. cannabis sector is growing amid possible legalization, and experts are wondering what the industry might look like soon: will large corporations come in or the market will be divided by many independent companies?
The giants of the tobacco market have already begun to invest in the growing marijuana market. Cigarette maker Altria Group bought a $1.8 billion stake (45%) in marijuana company Cronos back in 2018. Other tobacco corporations are also looking to diversify their business by buying stakes in cannabis-related companies. Or, for example, Uber, plans to deliver marijuana as soon as it is fully legalized in the US.