Three Massachusetts pot shops are now open for recreational use, but where is that tax revenue actually going?
Governor Charlie Baker in 2017 signed legislation increasing the maximum combined state and local tax rate on recreational marijuana to 20 percent. All tax revenue from marijuana sales goes into the state’s “Marijuana Regulation Fund,” according to state law.
The law says money in the fund is earmarked first for enforcement of the state’s marijuana regulations.
Additional money can be spent on public health, education, public safety, police training, and other marijuana-related programs.
“I think it should be going to more tangible resources, more resources for the campuses, maybe more scholarships,” said Oscar Malone of Northampton.
Under the law, consumers pay a 10 and three quarters percent levy tax in addition to the state’s regular 6.25 percent sales tax.
Cities and towns also have the option of adding a three percent local tax.
Alternative Therapies Group in Salem became the third recreational marijuana dispensary in the state Saturday.