The Minnesota Department of Revenue says the state has generated $10,022,635 in taxes on hemp-derived THC products since the market launched nearly a year ago, according to a MinnPost report.
Minnesota legalized cannabis use for adults last year but the state’s full adult-use industry is not expected to launch until 2025. Lawmakers had previously legalized low-dose cannabis edibles and other products, and the market for hemp-derived cannabinoid products has steadily grown. Officials said the state earned $1,217,450 from 1,873 tax-paying businesses in May alone — and with the monthly taxes now exceeding $1 million per month, and with a 10% tax rate on the sale of hemp-derived cannabinoid products, officials estimated the hemp products market at about $130 million annually.
Some industry operators suggested the state’s numbers seemed low to them:
“$130 million from scratch, that’s pretty good but I think it’s underrepresented. To me they sound low based on what I know.” — Shawn Weber, president of the Minnesota Cannabis Growers Cooperative and co-owner of Crested River Cannabis, via MinnPost
Under the state’s low-potency hemp regulations, companies selling hemp products were required to register with the Department of Health’s Office of Medical Cannabis, which merged on Monday with the Office of Cannabis Management, the report said.
Twenty percent of the state’s hemp-derived tax dollars go to local governments, with counties getting half that money and city governments getting the other half. Counties with more licensed cannabis businesses will see more tax distribution.
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