Minnesota collected nearly $600,000 in tax revenues from Cannabis-infused gummies and drinks last month, according to state Department of Revenue data outlined by CBS News. The agency indicated it had received more than $594,000 from 571 businesses from July sales of Cannabis products, which includes hemp-derived products that contain THC sold at retailers throughout the state.
If the early figures are any indication of the state market, annual sales of the products could surpass $70 million, amounting to $7 million annually in tax revenues for the state.
The state’s legalization law imposes a 10% gross receipts tax on the sale of products that contain THC, including hemp products that were legalized a year ago but hadn’t been assessed a separate tax, MPR News reports.
Adult-use products are not yet available in the state and might not be for at least a year, according to MPR News. Adult-use Cannabis sales in the state are projected to bring in $42 million from the gross receipts tax in the first two years but total as much as $120 million in the two years after that. Medical Cannabis sales are not subject to any taxes and will not be taxed once the adult-use market rolls out.
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