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Politics and Government News

St. Paul

August 23, 2023 11:29 AM

THC gummy money starts to roll into Minnesota tax coffers

Bags of gummie snacks containing THC — A customer shows products bought after THC gummies became legal last year in Minnesota. Data released Wednesday shows THC products brought in nearly $600,000 in tax revenue in July, the first month of tax collections tied to the hemp-derived products.
Grace Birnstengel | MPR News 2022

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Updated 12:31 p.m.

Minnesota collected $594,000 during the first month of a tax tied to hemp-derived THC products, according to preliminary data released Wednesday. That means state sales of THC-infused gummies, seltzers and other products totaled nearly $6 million in July.

A state Revenue Department official said 571 businesses submitted tax collections for July as of a deadline earlier this week, but more money could still trickle in.

The new Minnesota marijuana law imposed a 10 percent gross receipts tax on sales. That includes the hemp products that have been legal for a year but hadn’t been previously assessed a separate tax.

Retail marijuana isn’t widely available yet and might not be for at least a year. Cannabis sold through tribal dispensaries is not subject to state taxes.

When lawmakers approved the marijuana bill, they got fiscal projections that the gross receipts tax would bring in $42 million the first two years but shoot up above $120 million in the two years after that.

MPR News reporter Brian Bakst contributed to this report.

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