Vermont sells 2.6 million $ of cannabis in first month of adult-use sales

One U.S. state after another is following suit. While the state of Rhode Island has sold for 1.6 million $ of cannabis During the first week of legal sales, Vermont sold 2.6 million $ of cannabis in the first month.

The 14% excise tax thus generated $329,231 for the state treasury. Customers must also pay a sales tax of 6%, which represents an additional $144,000 for the government.

In accordance with state law, a portion of the excise tax revenue must be used to «cover» any deficit in the oversight commission’s budget. The remainder is allocated 70% to the general state fund and 30% to a «fund for the prevention and treatment of substance abuse.» Revenue from the tax on cannabis sales is allocated to after-school and summer learning programs.

What sets this state apart is the small number of licenses granted at the start of adult sales: only 7 were issued in October, with limited product testing capacity and reduced product supply. Only 3 stores were open on the first day of legal sales.

The government has since issued 29 additional licenses, which should improve access to legal cannabis.

The Cannabis has been legal in Vermont since 2018 but the sales system was not passed until 2020. Initial sales were able to take place last October.

According to projections from MJBiz, Vermont is expected to generate $3 million to $5 million in recreational sales this year and $120 million to $145 million by 2026.

The executive director of the Vermont Cannabis Control Board, Brynn Hare, told the local newspaper Seven Days that revenue figures for November, December, and even January might be a better indication of what the government can expect from a more established market.