Bloomberg Tax
Dec. 3, 2021, 5:23 PM

Pot Taxes May Yield $12 Billion for States by 2030 Says Barclays

Martin Z. Braun
Martin Z. Braun
Bloomberg News

When U.S. states and municipalities burn through their federal coronavirus relief money, taxes on legal weed will help blunt the budget pain.

Cannabis tax revenue generated more than $2 billion in the U.S. last year and that could grow to $10 billion to $12 billion for states by 2030, exceeding tax revenue from alcohol, according to municipal-bond strategists at Barclays Plc. This year, five states--New York, New Jersey, Connecticut, Virginia and New Mexico legalized recreational pot, bringing to 18 the number of states enacting law to regulate and tax cannabis for adult use.

“We’ll have some long lasting consequences ...