Vermont’s adult-use cannabis industry took off with a bang. The Vermont Department of Taxes reported that Vermont’s first legal marijuana sales month was October.

“It really is just kind of tracking pretty closely with what our projections were,” Brynn Hare, executive director of the Vermont Cannabis Control Board told Seven Days. “If you carry those numbers out—if we continue to get licenses out, we get the tourist revenue that we were anticipating into the state—then I think we’re on track to hit our projection for [fiscal year 2023].”

According to James Pepper, chair of the Vermont Cannabis Control Board—$2.1 to $2.4 million in excise taxes could be collected during the first nine months of cannabis sales. It amounts to approximately $233,000-$267,000 per month. “They look pretty much like our projections were accurate,” Pepper said.

Seven Days reports that Vermont legislature’s Joint Fiscal Office predicted higher numbers, with annual sales estimates ranging from $3.3 million to $9.1 million, translating to monthly excise tax revenues of $275,000 to $758,000.

Vermont was the eleventh state in 2020 to regulate and tax cannabis. The results are starting to be visible two years later. Vermont’s adult cannabis market was officially opened in Vermont last year. There are now three locations that can serve customers.

The three retailers to open this weekend were FLORA Cannabis in Middlebury, Mountain Girl Cannabis in Rutland, and CeresMED in Burlington, according to the Associated Press, which noted that a “fourth business has been licensed to sell recreational pot but isn’t ready to do so yet.” 

Vermont’s 2018 law, which was signed by Republican Gov. Phil Scott’s 2018 law in Vermont, signed by Republican Gov. This changed in 2020 when the lawmakers approved a law that established a regulated cannabis industry.

Vermont’s Cannabis Tax Structure

Officials also say the state has collected $329,231 in excise tax revenue—set at 14%—in the past two months since sales began. Patrons must also pay Vermont’s 6% sales tax on general sales, which amounted to another $144,000 for the state.

“Those numbers are actually right on track with our projected numbers from our financial model,” Nellie Marvel with the Vermont Cannabis Control Board told WCAX. Marvel claims that the state has now opened two dozen retail stores. They expect tax dollars will continue to rise. “The number of retailers that are open, the price of cannabis—and the price of cannabis, of course, is a function of the number of cultivators that are licensed, the size of their harvest—and the state’s tourism numbers.”

Under Vermont law, a portion of the excise tax revenue is allocated to fill any deficit in the control board’s budget. The state general fund receives 70% of excise taxes revenue. 30% is used to support substance abuse prevention and control funds. Revenue from the sale of cannabis is available for summer and after-school learning programs.

The latest report shows that 36 shops licensed for cannabis were approved by the state’s control board.

Cannabis shops are stocking up for busy holidays. “Wednesday was awesome,” Sarah Coshow, director of retail operations at Green State Dispensary, told My Champlain Valley. “Everyone preparing to go home to the family. They did a lot of preparation by standing in line and picking up some pre-rolls and edibles.”