While New Hampshire experienced a recent boost in revenue due to a one-time tax amnesty, it is facing looming fiscal challenges. Liquor sales are declining and federal budget cuts are shifting more costs to the state. Meanwhile, New Hampshire is missing out on tens of millions of dollars in annual tax proceeds from cannabis — money that is flowing from Granite Staters’ pockets into neighboring states’ coffers. Every one of New Hampshire’s neighboring states and Canada have legalized cannabis. And 25% of Granite Staters admit to being cannabis consumers.
Based on projections from Arizona, Maryland, and Michigan1, and using HB 186 tax rate of 8.5% (the Meals and Rooms Tax), the Marijuana Policy Project anticipates that New Hampshire would generate between $6-14 million in tax revenue in the first year of legal cannabis sales, about $15.5 million in the second year, and between $18-35 million in year four.
Sales Year
Maryland Revenue
Adjusted to NH's Population
Adjusted to a 8.5% Retail Tax
Year 1 (7/23-6/24)
$63,762,873
$14,344,865
$13,547,928
Year 2 (7/24-6/25)
$74,296,273
$16,714,585
$15,785,997
Total
Total $138,059,146
$31,059,450
$29,333,925
Sales Year
Michigan Revenue 16% retail tax
Adjusted to NH’s Population and a 8.5% tax
Year 1
$81,705,350
$6,031,460
Year 2
$209,912,278
$15,495,651
Year 3
$326,049,074
$24,068,828
Year 4
$473,303,560
$34,939,103
Year 5
$523,552,765
$38,648,482
Total
$1,614,523,027
$119,183,525
Sales Year
Arizona Revenue 21.6% at retail
Adjusted to NH’s Population and a 8.5% tax
Year 1
$153,824,757
$11,249,122
Year 2
$223,863,799
$16,371,040
Year 3
$257,926,777
$18,862,047
Year 4
$253,061,173
$18,506,228
Total
$888,676,506
$64,988,436
1. All three states allowed medical businesses to convert to dual use, and also licensed new businesses. In Arizona, sales began four months after the law’s passage. In Michigan, sales began 13 months after passage. In Maryland, sales began seven months after voters approved a simple, legislatively-referred ballot question.