High Rate May Undermine Shapiro’s Weed Tax Bounty

Gov. Josh Shapiro has recreational cannabis on his mind, though legalization advocates worry the tax rate could be too high. Details remain scant, but the governor’s proposed budget includes an adult-use cannabis tax in the form of a 20% wholesale tax, assuming that sales would begin in January 2025. The commonwealth would then realize revenues starting in fiscal year 2024-25. The budget estimates that Pennsylvania would harvest $16 million in 2024-25, growing to $189 million annually by 2027-28.