Advocates point to billions in tax revenue nationwide, while legislators study how a legal market could work in the Tar Heel State.
CHARLOTTE, N.C. — The debate over marijuana legalization continues in North Carolina, as advocates and lawmakers consider whether allowing medical or recreational use could generate significant tax revenue for the state.
North Carolina remains one of only a few states that have not legalized marijuana in any form. Supporters argue that legalization could provide a new source of funding at a time when lawmakers are facing budget pressures and growing costs.
“Cannabis use is growing, and it will continue to grow,” said Kevin Caldwell, the Southeast legislative manager for the Marijuana Policy Project.
Across the country, states with legalized recreational marijuana have generated billions of dollars in tax revenue. Since sales began in 2014, those states have collected nearly $25 billion, including more than $4 billion last year alone, according to national data cited by advocates.
Caldwell said that revenue has been directed toward a wide range of public needs, including education and public health programs.
“Education is always key,” Caldwell said. “When you look at states like Colorado, one of the first to legalize adult-use cannabis, a lot of those tax dollars went toward building new schools.”
A Colorado state report shows marijuana excise and sales taxes contributed about $855 million directly to schools between 2014 and 2023. Advocates say North Carolina could see similar financial benefits if marijuana were legalized. Caldwell estimates the state could generate between $500 million and $700 million annually in combined state and local revenue.
State Rep. Jordan Lopez, a Democrat whose district includes part of Mecklenburg County, said the potential revenue is part of a broader conversation about the state’s long-term fiscal outlook.
“I’ve tried to keep the revenue that could be generated from legalizing marijuana at the forefront of the conversation,” Lopez said.
Lopez said North Carolina is facing challenges as tax cuts reduce revenue growth while state expenditures continue to rise.
“We’re cutting taxes across the board, and the tax base is not growing fast enough to keep up with our current expenditures,” Lopez said. “States like Virginia and Illinois are seeing hundreds of millions to more than a billion dollars a year. North Carolina could find itself somewhere in the middle, if not above that.”
Lopez recently filed a bill that would legalize and tax adult-use marijuana in North Carolina. He said lawmakers are closely studying how other states have structured their cannabis markets to avoid pitfalls and maximize public benefit.
“It can be a win for almost everybody,” Lopez said. “From farmers who grow it, to business owners who sell it, and for public officials who can reinvest additional revenue into communities.”
Advocates also say legalization could move cannabis sales into a regulated market, improving product safety while generating new funding for state programs.
For now, the proposal faces an uncertain path in the General Assembly, where marijuana legalization has stalled repeatedly in recent years.
Contact Myles Harris at mharris5@wcnc.com and follow him on Facebook, X and Instagram.
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