By Timothy S. Donahue

Top Takeaways:

• Revenue argument front and center: Advocates estimate North Carolina could generate $500–$700 million annually from legalized cannabis.
• Regional pressure builds: Lawmakers point to revenue gains in states like Colorado, Virginia and Illinois as models.
• Uncertain path: Despite renewed debate, legalization has stalled repeatedly in the General Assembly.

The debate over marijuana legalization is resurfacing in North Carolina, with advocates and lawmakers arguing that legalizing medical or recreational cannabis could generate significant new tax revenue for the state.

North Carolina remains among a shrinking number of states that have not legalized marijuana in any form. Supporters say that stance leaves potential revenue untapped at a time when lawmakers face budget pressures and rising expenditures.

“Cannabis use is growing, and it will continue to grow,” said Kevin Caldwell, Southeast legislative manager for the Marijuana Policy Project.

Advocates cite national data showing that states with legal recreational marijuana markets have collected nearly $25 billion in tax revenue since 2014, including more than $4 billion last year alone. Caldwell said those funds have supported education, public health, and other state priorities.

“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.”

According to a Colorado state report, marijuana excise and sales taxes contributed approximately $855 million directly to schools in its state from 2014 to 2023.

State Rep. Jordan Lopez, a Democrat representing part of Mecklenburg County, said the fiscal implications are central to the policy debate.

“I’ve tried to keep the revenue that could be generated from legalizing marijuana at the forefront of the conversation,” Lopez said.

Lopez noted that North Carolina’s tax structure is under pressure because reductions in certain taxes are slowing revenue growth while state spending continues 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 legislation to legalize and tax adult-use marijuana. He said lawmakers are examining how other states have structured their cannabis markets to avoid regulatory gaps 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 argue that legalization would move cannabis sales into a regulated market, improving product oversight and reducing illicit activity.

For now, however, the proposal faces an uncertain future. Marijuana legalization efforts have repeatedly stalled in the General Assembly, and opposition remains strong among some legislative leaders.