NY collected $33.45 million in weed tax in 2023

ALBANY, N.Y. (NEWS10) - As the United States increasingly embraces the legalization of marijuana for both recreational and medical use, the economic ramifications of doing so are coming into focus. LendingTree, used data from the U.S. Census Bureau for 2022 and 2023, to show how the burgeoning cannabis industry is boosting state coffers, infusing them with billions in tax revenue.

"The big takeaway for states is that there is a whole lot of money to be made in legal cannabis." said Matt Schulz, chief credit analyst at LendingTree.

In 2023, the total revenue from cannabis taxes in the United States reached $2.86 billion. Missouri, taking the lead, collecting $67.36 million, marking a 355.5% surge from the previous year. New York followed, with an 184.1% increase from 2022, collecting $33.45 million. Of all the states, California brought in the most cash from marijuana taxes, gathering $567.35 million.

"If you’re just looking at it from a revenue standpoint it is easy to see why a lot of states are jumping in" said Schulz.

The study comes as the U.S. Drug Enforcement Administration (DEA) contemplates reclassifying marijuana, signaling a shift in its perception as a less dangerous substance. The reclassification would reflect a broader change in societal attitudes and governmental recognition of the drug's safety and benefits.

But Schultz says, for individuals hoping to get into the cannabis industry, there is still a ways to go, "credit card companies have generally shied away from these kinds of transactions and until that changes in a significant way, there’s going to be a ceiling on how far these types of businesses can grow".