{"id":695,"date":"2026-05-19T10:03:22","date_gmt":"2026-05-19T10:03:22","guid":{"rendered":"https:\/\/bostonrelocationinsider.com\/?p=695"},"modified":"2026-05-19T10:03:22","modified_gmt":"2026-05-19T10:03:22","slug":"recreational-weed-brings-in-nearly-300-million-a-year-in-taxes-what-if-a-mass-ballot-initiative-kills-the-industry","status":"publish","type":"post","link":"https:\/\/bostonrelocationinsider.com\/?p=695","title":{"rendered":"Recreational weed brings in nearly $300 million a year in taxes. What if a Mass. ballot initiative kills the industry?"},"content":{"rendered":"
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Tax revenue from recreational marijuana, one of the state\u2019s most highly taxed consumer products, <\/i>could vanish if a November ballot question seeking to eliminate the industry succeeds.<\/span><\/p>\n

Read more She hated her fifth-grade teacher. Decades later she decided to save his life.<\/a><\/p>\n

Last year, weed taxesraised $289 million for state government, the same as cigarettes \u2014 and nearly three times more than alcohol. Towns and cities, meanwhile, collected $50 million. Combined, cannabis taxes have almost surpassed$2 billion since pot shops opened eight years ago. <\/span><\/p>\n<\/div>\n

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Pot taxes account for only around half a percent of Massachusetts\u2019 total tax revenues, but losing that money could spell trouble for some towns and state efforts, especially addiction services. Surging inflation and health care costs are chokinggovernment budgets,prompting many towns and cities to ask voters for property tax overrides this spring.<\/span><\/p>\n

\u201cLike with every revenue stream in the Commonwealth, if you lose out on that . . . [the budget] gets squeezed,\u201d said Jessica Troe, deputy director of research at Massachusetts Budget & Policy Center, a think tank.<\/span><\/p>\n

The ballot initiative would end recreational cannabis sales, which are taxed at around 20 percent, but would allow tax-free medical marijuana to remain legal. <\/span><\/p>\n

It remains to be seen how serious a threat the ballot question poses to the cannabis industry.The effort is backed by local and national groups that have raised safety questions about legal weed, while opponents of the measure argue repealing marijuana sales would put the market back under the control of unregulated, illegal dealers. <\/span><\/p>\n

A recent poll found 63 percent of voters opposed the question. Repeal advocates must collect 12,429 more signatures by July 1 to qualify for the ballot.<\/span><\/p>\n

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State taxes<\/h2>\n<\/div>\n<\/div>\n

At the state level, pot taxes have funded the bulk of Massachusetts\u2019 addiction services since 2019. Weed revenues also bolster the general budget, finance the state Cannabis Control Commission, and contribute to the Massachusetts Bay Transportation Authority and the Massachusetts School Building Authority.<\/span><\/p>\n

\u201cFor a lot of jurisdictions, the tax revenue from cannabis was a very attractive feature [of legalization],\u201d said Beau Kilmer, co-director of theRAND Drug Policy Research Center. \u201cMassachusetts is also using this to offset some of the consequences associated with substance use.\u201d<\/span><\/p>\n

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While pot sales have soared in recent years, prices have declined amid rising supply. Cannabis regulators have attempted to stop market free fall by recently approving a temporary freeze on new cultivation licenses, starting in June.<\/span><\/p>\n

Last year, state excise taxes and fees from weed salesfunded over 70 percent of the budget for Bureau of Substance Addiction Services, Troe said. The bureaubankrolls recovery groups and oversees hundreds of treatment programs.<\/span><\/p>\n

A Department of Public Health spokesperson said losing marijuana revenue could harm the bureau or other service areas, as rising costs and federal cuts have squeezed the budget.<\/span><\/p>\n

Around 15 percent of cannabis excise revenues also pay for a social equity trust fund. Since 2024, the fund has designated over $57 million to be allocatedto cannabis entrepreneurs from communities disproportionately harmed by marijuana arrests.<\/span><\/p>\n

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\u201cIt would be devastating to lose access to that critical funding,\u201d said Caroline Pineau, owner of Stem Haverhill, a dispensary that has been tapped to receive $800,000 from the fund.Pineau is also a plaintiff in a lawsuit arguing the ballot question overreaches by dismantling the social equity fund. <\/span><\/p>\n

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Local taxes<\/h2>\n<\/div>\n<\/div>\n

Towns and cities receive a 3 percent tax on pot sales. That money typically enters municipal general funds, paying for everything from firefighter salaries to road maintenance. <\/span><\/p>\n

In many places,marijuana-related collections have either fallen or plateaued in recent years. <\/span><\/p>\n

\u201cA couple of first movers . . . really did gain a significant amount of money that they could use for local needs,\u201d said Evan Horowitz, executive director for the center for state policy analysis at Tisch College of Tufts University, which has analyzed the upcoming ballot questions. \u201cBut that window\u2019s closed.\u201d<\/span><\/p>\n

Boston, which raises the most cannabis taxes, took in $2.9 million for its general fund from marijuana levies last year. This marked an 18 percent drop in revenues from the previous year, according to state data. In Northampton, the state\u2019s fourth biggest pot tax collector, revenues have dropped 30 percent since 2020.<\/span><\/p>\n

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Overall, local collections rose a modest 4 percent statewide, though state data project a 22 percent decrease this fiscal year.<\/span><\/p>\n

Falling revenues have raised concerns among some residents about how they will fund their own public health initiatives.<\/span><\/p>\n

Read more NBA\u2019s proposal to reform the draft lottery in an effort to combat teams tanking should be swatted, Wemby-style<\/a><\/p>\n

Brookline \u2014 which opened Greater Boston\u2019s first legal pot shop in 2019 \u2014 collected roughly $255,000 in marijuana taxes last year, an 86 percent drop in tax revenue since 2020.<\/span><\/p>\n

The town\u2019s marijuana taxes support the general budget, according to deputy town administrator Melissa Goff, which includes allocations for substance use and prevention work.<\/span><\/p>\n

Brooklinerecently passed its sixth property tax override in roughly three decades, driven by rising costs.<\/span><\/p>\n

Town Meeting member Susan Park said she\u2019s unhappy with how cannabis revenues have been spent locally and not enough has been done to combat youth use.<\/span><\/p>\n

Park said she has heard many community members express regret about allowing cannabis retail.<\/span><\/p>\n

\u201cIt was a great tax opportunity for the town, but decisions aren\u2019t black and white,\u201d said Park,who previously led an initiative to cap the town\u2019s nascent marijuana industry at four stores in 2023.<\/span><\/p>\n

For years, the state has not allocated new funding to a public awareness campaign examining the health risks of marijuana health, despite such initiatives being required by state law to be funded with pot tax revenues, WCVB first reported in February. <\/span><\/p>\n

Lawmakers allocated $3.7 million to the cause between 2019 and 2020, according to Massachusetts Budget & Policy Center, but none since. A supplemental state Senate budget released in April includes $1 million for this program, though it is still being reconciled with a House budget where that funding is absent.<\/span><\/p>\n

Public health initiatives in Brookline received more than $1 million from marijuana companies in fees collected between 2017 and 2023, but those fees were subsequently ruled unnecessary by policy makers and ended.<\/span><\/p>\n

Great Barrington, a small town in the Berkshires, is facing budget problems likely hastened by the decline in marijuana\u2019s profitability, said Steve Bannon, chair of the Select Board and the School Committee. <\/span><\/p>\n

Weed taxes accounted for over one-quarter of the town\u2019s nonproperty tax revenues from 2020 to 2022, state data show. But as neighboring states andtowns rolled out pot shops, cannabis tax revenues declined 70 percent in three years. <\/span><\/p>\n

This year, Great Barrington faces a $5 million shortfall. Voters last week shot down a proposed property tax override, which town officials said was needed to fund school district cost increases.<\/span><\/p>\n

Marijuana taxes had previously offset rising costs and slowed the growth of residents\u2019 property tax burdens, said Ed Abrahams,a former vicechair of the town\u2019s Select Board. <\/span><\/p>\n

To cover deficits, Bannon said the town must tap surplus funds, which once got a hefty boost from weed sales, but have become increasingly exhausted.<\/span><\/p>\n

\u201cWe were spoiled at the beginning, but our eyes were wide open that it just wasn\u2019t sustainable,\u201d said Bannon. \u201cEverything\u2019s just come together at a really bad time.\u201d <\/span><\/p>\n

If recreational marijuana goes away, he said, it would \u201churt, but wouldn\u2019t be devastating for the town.\u201d<\/span><\/p>\n

In Fitchburg, eight weed shops and almost half a dozengrowers have helped boost the historic mill city\u2019s tax revenues, said Mayor Samantha Squailia, who opposes the ballot question. One major grow facility, Revolutionary Clinics, shuttered in 2025, and one other pot shop failed to launch this year, she said.<\/span><\/p>\n

Still, \u201cwhen it comes to re-utilization of these old industrial spaces,\u201d Squailia added, \u201ccannabis did come and save the day.\u201d<\/span><\/p>\n

Read more Victor Wembanyama has 41 points, 24 rebounds and Spurs top Thunder double OT to open West finals<\/a><\/p>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Losing that money could spell trouble for some towns and state efforts, especially addiction services.<\/p>\n","protected":false},"author":1,"featured_media":694,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\nRecreational weed brings in nearly $300 million a year in taxes. 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