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FACT BRIEF

Has Wisconsin missed out on millions of dollars in revenue by not legalizing marijuana?

By Erin Gretzinger
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YES

According to Gov. Tony Evers' office, Wisconsin would generate an estimated $165 million in revenue by legalizing and regulating marijuana. While some experts say this projection may be too high, neighboring states' experiences support that Wisconsin would earn millions in tax and licensing revenue if marijuana were legalized. 

PolitiFact Wisconsin found that Evers' office used data from Colorado and adjusted it for population and reported marijuana usage to obtain its estimate. Different state size and tax structures make it difficult to predict Wisconsin's total revenue, but some experts said $165 million is plausible.

Illinois and Michigan, which border Wisconsin, have legalized recreational marijuana in recent years. Following its first year of legalization, Illinois made $175 million in marijuana sales taxes in 2020. Michigan made an estimated $81 million in its first full year of legalization in 2020 and nearly $210 million in 2021.

This fact brief is responsive to conversations such as this one.
Sources
Governor Evers Justice Reform & Marijuana Legalization
PolitiFact Wisconsin marijuana revenue projections valid, but overly optimistic
Daily Journal Illinois generates 5th most tax revenue for marijuana sales
Marijuana Policy Project Cannabis Tax Revenue in States that Regulate Cannabis for Adult Use
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Wisconsin Watch
Wisconsin Watch, the news arm of the nonpartisan, nonprofit Wisconsin Center for Investigative Journalism, increases the quality and quantity of investigative reporting in Wisconsin, while training current and future investigative journalists. Its work fosters an informed citizenry and strengthens democracy.
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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.