California has earned more than $216 million in tax revenue from the sale of legal cannabis this year.
On Tuesday, the California Department of Tax and Fee Administration reported the tax revenue generated from cannabis sales for the first quarter of 2023.
As of May 16, cannabis tax revenue added up to about $216.2 million, including $104.3 million from the cannabis excise tax, and $111.9 in sales tax revenue.
Those totals are down slightly from the fourth quarter of 2022, when the state collected $248.5 million in cannabis taxes.
The state says legal cannabis sales have generated nearly $5 billion in tax revenue since January 2018, when commercial cannabis businesses were first allowed to legally sell the previously outlawed product.
In previous years, cannabis retailers were required to pay a “cultivation tax,” but that tax was dropped entirely in July 2022 following broad bipartisan support in the state legislature. Growers argued that the cultivation tax was too high and it was stifling the industry and making it hard for some smaller companies to make a profit.
Tuesday’s numbers from the CDTFA do not include any outstanding tax returns or returns that are still being processed. They also only reflect the tax revenue paid to the state; many cities and counties across California have their own additional fees and taxes that are collected at the local level.
For more information on California cannabis tax revenue, click here.
Recreational cannabis use has been legal in California since the 2016 general election.