Vermont Retail Cannabis Revenue Nearly $6 Million in January
MONTPELIER — During the first month of 2023, cannabis retailers in Vermont sold over $5.7 million worth of products, according to a monthly revenue report released on Friday by the state’s Agency of Administration with new figures from the Vermont Department of Taxes.
The 14% cannabis excise tax, which must be applied to all adult use cannabis purchases at retailers, brought in $799,102 in the month of January alone. An additional 6% sales tax, which must also be leveraged on cannabis products, brought in another $342,472.
In December, Vermont Cannabis Control Board Executive Director Brynn Hare told Seven Days that revenue from November, December and January could be more indicative of what the state can expect from an established market.
Considering cannabis revenue continues to grow substantially each month as the number of dispensaries across the state steadily increases, Vermont is on track to have a lucrative industry.
In October 2022, only three retailers were in operation in Vermont. Since then, that number has increased to roughly 40 retail establishments.
Market projections developed by a consulting firm for the Control Board predicted the state would make $2.1 to $2.4 million in excise taxes during the first nine months. Broken down, this equates to around $233,000 to $267,000 per month, meaning excise tax revenue from January has significantly surpassed estimates from those projections.
As defined by statute, some excise tax revenue must be used to backfill any deficits in the control board’s budget. Of the remainder, 70 percent goes to the state general fund, while 30 percent goes to a substance misuse and prevention fund. The sales tax portion of the revenue is allocated to a grant program for after-school and summer learning programs, with a focus on underserved areas.
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