BURLINGTON, Vt. (WCAX) – Where is all the state revenue from Vermont cannabis product sales going? And why hasn’t it significantly increased the state’s tax revenue as promised? Those are questions asked by WCAX viewers Jesse and Brian this week, so we got her answers.
Many WCAX viewers probably remember the headlines from when the legal marijuana market was set up that said the taxes the state collects from recreational sales would be used for a combination of substance use prevention and education. From that, some would likely infer that at least some of the money would be going into the state’s Education Fund, but it actually doesn’t at all.
The Joint Fiscal Office’s latest report on cannabis revenue shows the state brought in about $8.1 million last calendar year. That goes to pay for afterschool programs specifically — so, not the Education Fund.
And on top of the sales tax, Vermont also has a 14-percent excise tax on recreational cannabis that brought in about $19.7 million in 2024. That money currently goes into the Cannabis Regulation Fund.
Any money that is leftover — about $12 million so far this fiscal year — goes into the General Fund, with 30 percent of that set aside for the Vermont Department of Health to use on substance use prevention.
There are some changes next fiscal year. Starting in July, all the excise tax revenues from recreational cannabis sales will go to the General Fund, with 30 percent — up to $10 million — still earmarked for substance use prevention.
As for Brian’s question of whether there would be a significant increase — $20 million is less than one percent of the General Fund revenue, so it’s really just a drop in the bucket.
If you have a question after seeing any of our reporting, send us a note at GettingAnswers@wcax.com, and we’ll try to get some answers for you, too.