Worcester County Communities Net $6.4M in Cannabis Taxes in 2024
Communities across Worcester County have been benefiting from recreational cannabis sales, and municipal budgets are seeing the impacts of local cannabis tax collections. According to the Worcester Business Journal, in 2024, 22 Worcester County municipalities that hosted recreational marijuana dispensaries netted a combined $6.42 million in local cannabis taxes, an increase of almost 2.75% from the previous fiscal year.
“Our overall picture of ourselves as an industry is that we’ve had a positive impact on local communities without any of the negative impacts that were perceived when we first started getting these licenses,” said Ryan Dominguez, executive director of the Massachusetts Cannabis Coalition.
While large communities with many dispensaries, like Worcester and smaller towns near the state’s borders, receive substantial amounts of cannabis tax funds, some municipalities have witnessed declines in the overall cannabis tax revenue.
The Worcester Business Journal pointed out one contributing factor to Worcester County’s high cannabis tax revenue: out-of-state consumers. Cannabis remains illegal for recreational use in New Hampshire. Although Connecticut and Rhode Island legalized recreational cannabis in 2021 and 2022, respectively, stricter regulations and a less desirable marketplace have led consumers in these states to head to Massachusetts to make their recreational cannabis purchases.
For dispensaries in the northern and southern ends of Worcester County, small municipalities like Blackstone and Winchendon have received significant amounts of local cannabis taxes. The Town of Blackstone government earned $1.06 million in cannabis excise tax revenue in fiscal 2024, while the Town of Winchendon government received $338,527 in fiscal 2024 from its two dispensaries.
Massachusetts law permits municipalities to collect up to 3% in local taxes on recreational cannabis sales.
With 13 active recreational dispensaries and a sizable population, Worcester is at the top of the county for overall local cannabis tax revenue. However, the city’s dispensaries have seen tax revenues declining over time, especially as more retailers have opened their doors in nearby communities.
According to the Worcester Business Journal, the City of Worcester received $1.69 million through local cannabis excise taxes in fiscal 2024, a decrease of 11.9% from $1.91 million in fiscal year 2022.
