States Approving Legal Marijuana Must Avoid Tax Revenue Potholes

Michigan and Missouri are the latest states that will collect tax on marijuana sales, but legalization may not be a sure-fire path to revenue.

Legal pot can be a big boost for state finances—Colorado collected nearly $250 million in marijuana-related taxes and fees in 2017. But observers told Bloomberg Tax that some states have left tax revenue on the table because of overly ambitious rollout plans, lengthy application processes, and unclear implementing legislation.

Michigan voters Nov. 6 approved legal recreational marijuana, while a Missouri ballot measure legalizing medical marijuana sales also passed, the Associated Press projected. Utah also approved medical ...