As public opinion increasingly favors the legalization of recreational marijuana, a growing number of states must determine how to tax legal sales of cannabis.
To date, nine states (Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, Vermont, and Washington) and the District of Columbia have legalized recreational marijuana, but only eight of these jurisdictions have legal markets. The table below highlights the states that have implemented legal markets and levy taxes on recreational marijuana.
Of the states with legal markets, Alaska is the only state that does not impose some form of sales tax on end-users. In each of the other states, taxes levied on the sale of marijuana far exceed the general sales tax rate levied by that state:
Vermont legalized the possession of marijuana this year but did not create a legal market. D.C. also allows for possessing and growing of marijuana but does not allow for sales in a legal market.