American states follow and resemble each other. While the state of Rhode Island sold $1.6 million worth of cannabis during the first week of legal sales, Vermont sold $2.6 million worth of cannabis in the first month.
The 14% excise tax brought in $329,231 to the state coffers. Customers must also pay 6% sales tax, which is an additional $144,000 for the state.
Under state law, a portion of the excise tax revenue must be used to “fill” any shortfall in the Board of Auditors budget. The rest is paid 70% to the general state fund and 30% to a “substance abuse prevention and control fund”. Proceeds from the cannabis sales tax are earmarked for after-school and summer learning programs.
The peculiarity of the State is the low number of licenses granted to the opening of sales for adults: only 7 were issued in October, with limited product analysis capacities and a reduced product supply. Only 3 stores were open on the 1st day of legal sales.
The state has since issued 29 additional licenses, which should improve access to legal cannabis.
Cannabis has been legal in Vermont since 2018, but the sales system was only voted on in 2020. The first sales were made last October.
According to MJBiz projections, Vermont is expected to generate $3-5 million in recreational sales this year and $120-145 million by 2026.
The executive director of Vermont Cannabis Control BoardBrynn Hare, told the local newspaper Seven Days that the receipts for November, December and even January might be more indicative of what the state can expect from a more established market.