Minnesota Legalizes Recreational Marijuana

On May 30, 2023, Minnesota joined the ranks as the 23rd state to legalize recreational marijuana when Governor Tim Walz signed the legalization bill into law. The new legislation, which takes effect on August 1, permits the use of recreational cannabis for adults aged 21 and older.

Similarly, Maryland is set to implement its new recreational legalization policy on July 1, following voter approval for recreational cannabis use by individuals aged 21 and older on November 8. Recreational marijuana in Maryland will be subject to a 9% tax rate, while medical marijuana will remain tax-exempt.

In Congress, bipartisan Senate and House lawmakers reintroduced a highly anticipated bill on April 27 aimed at enabling banking services for the marijuana industry. Currently, most dispensaries operate on a cash-only basis due to federal marijuana illegality, with banks hesitant to assume risks associated with the drug classified as schedule 1.

Furthermore, between 2014 and 2022, states collectively generated over $15 billion in tax revenue from adult-use marijuana. In 2022 alone, states with legal recreational marijuana generated approximately $3.8 billion in cannabis tax revenue.