Twenty-five years ago, California became the first state to legalize medical marijuana. About 15 years later, Colorado made history when it legalized the use and sale of recreational cannabis. Now, a significant number of U.S. states have made moves to legalize medical and/or recreational marijuana, reshaping our society and nurturing a thriving cannabis industry.

Marijuana has gone mainstream, earning the support of an impressive majority of American adults. As a result, political efforts to legalize and decriminalize cannabis on both state and federal levels are gaining ground. And although there is still debate about the logistics of cannabis enforcement, medical vs. recreational use, and other relevant topics, the future of cannabis in the U.S. looks bright – or should we say, green. 

States Where Marijuana Is Legal 

So, which states have legalized marijuana? The easier question to answer is which states have not yet passed cannabis legalization measures. 

Cannabis is now legal in some capacity in a grand total of 38 states (and counting!). The states in which cannabis is still illegal are:

• Idaho
• Indiana
• Georgia
• Kansas
• Kentucky
• Nebraska
• North Carolina
• South Carolina
• Tennessee
• Texas
• Wisconsin
• Wyoming

In terms of states that legalized weed, 2021 was a solid year. It kept up the steady pace of spreading legalization efforts, and progress is highly likely to continue.

States Where Recreational Marijuana is Legal

In many states, cannabis is only legal for medical marijuana patients. This means that, in order to purchase and possess marijuana, an individual must first obtain a state-issued medical marijuana card.

However, more and more states are legalizing recreational adult-use cannabis. The states where recreational marijuana is legal are (in order of when legalization was passed):

• Colorado
• Washington
• Alaska
• Oregon
• Washington, D.C. (a regulatory agency for recreational cannabis has yet to be established)
• California
• Maine
• Massachusetts
• Nevada
• Michigan
• Vermont (Retail licenses will begin being issued in October 2022)
• Guam
• Illinois
• Arizona
• Montana
• New Jersey
• South Dakota (Note: Although the measure was passed by voters, it is pending a lawsuit)
• New York
• Virginia
• New Mexico
• Connecticut

States are responsible for developing their own processes for dispensary licensure, but all states require any business that sells cannabis to have a state-issued license.

Cannabis sales are regulated and taxed on a state-by-state basis, and the provisions for possession limits, how cannabis tax revenue is spent, and whether adults can grow cannabis plants at home also vary. 

In some states, cannabis sales include an excise tax. An excise tax is a tax placed on a specific good (in this case, cannabis), and is levied on the seller. Usually, the seller will pass on the cost to the consumer via product pricing.

We’ve included a state-by-state guide to recreational cannabis laws, including possession limits, taxes, and other relevant details.

Colorado – Legalization approved November 2012

• Adults over the age of 21 can possess and give away up to one ounce of marijuana.
• Adults over the age of 21 can grow up to six cannabis plants for personal use; each residence is limited to 12 plants total.
• Public use of cannabis is prohibited.
• Retail sales made at licensed dispensaries are subject to the standard Colorado sales tax, plus a 10% marijuana sales tax.
• A 15% cannabis excise tax is applied to wholesale purchases (businesses purchasing cannabis from cultivators).

Washington – Legalization approved November 2012

• Adults over the age of 21 can buy and possess up to one ounce of marijuana, 7 grams of marijuana concentrates, 72 ounces of marijuana-infused liquid products, and 16 ounces of marijuana-infused solid edible products.
• Recreational consumers are not permitted to grow their own cannabis plants.
• Public use of cannabis is prohibited.
• There is a 37% cannabis excise tax on retail sales made at licensed dispensaries.

Alaska – Legalization approved November 2014

• Adults over the age of 21 can possess and give away up to one ounce of marijuana.
• Adults over the age of 21 can grow up to six cannabis plants, three of which can be fully mature.
• Public cannabis consumption is illegal.
• An excise tax (specific dollar amounts for each type of cannabis) is levied on cultivators.

Oregon – Legalization approved November 2014

• Adults over the age of 21 can possess up to one ounce of cannabis in public, and up to 8 ounces in their own home. Up to 16 ounces of a solid product (like an edible) is permitted, or a maximum of 72 ounces of a cannabis-infused liquid product.
• Adults over the age of 21 can grow up to four marijuana plants.
• Cannabis cannot be consumed in public spaces.
• Retail cannabis is taxed at a rate of 17%, and cities/counties can choose to add up to 3% in addition tax in certain cases.

Washington, D.C. – Legalization approved November 2014

• Adults over the age of 21 can possess up to two ounces of marijuana, and give up to one ounce to another person.
• Adults over the age of 21 can grow up to six plants, only three of which are allowed to be mature.
• Recreational cannabis cannot be sold by retailers, because no regulatory method has been established for licensing recreational dispensaries. Instead, adult-use cannabis in D.C. is permitted only through gifting services.

California – Legalization approved November 2016

• Adults over the age of 21 can possess, give away, and/or purchase up to an ounce of cannabis and up to 8 grams of cannabis concentrate. 
• Adults over the age of 21 can grow up to six plants.
• It is illegal to consume/smoke cannabis in public places, as well as in a motor vehicle.
• Retail cannabis sales are subject to California state sales tax, as well as a 15% excise tax. Local governments are allowed to enact additional taxes.

Maine – Legalization approved November 2016

• An adult over the age of 21 can possess and use up to 2.5 ounces of cannabis.
• Adults over the age of 21 can grow a maximum of 6 mature/flowering plants and 12 immature plants.
• Retail sales are taxed at a 10% cannabis sales tax rate, in addition to a 15% excise tax.

Massachusetts – Legalization approved November 2016

• Adults over the age of 21 can possess up to one ounce on their person, and a total of 10 ounces at their home.
• Adults over the age of 21 (residents only) can grow up to six plants, with a maximum of 12 plants per household of two or more people.
• Retail sales are subject to Massachusetts state sales tax, and an excise tax of 10.75%. Towns/cities are able to levy an additional tax of up to 3%.

Nevada – Legalization approved November 2016

• Adults over the age of 21 can possess up to one ounce, and up to 1/8 ounce of concentrate cannabis.
• Adults over the age of 21 can grow up to six plants, but no more than 12 plants are permitted per residence.
• Marijuana cannot be consumed in public or in a motor vehicle.
• There is a 10% cannabis excise tax added to standard Nevada state sales tax for retail sales.

Michigan – Legalization approved November 2018

• Adults over the age of 21 can possess up to 2.5 ounces of cannabis, and a maximum of 15 ounces of cannabis concentrate.
• Adults over the age of 21 can grow up to 12 plants per household.

Vermont – Legalization approved January 2018

• Adults over the age of 21 can possess up to one ounce of cannabis.
• Adults over the age of 21 can grow up to two mature plants and four immature plants per household.
• Presently, it is still illegal to buy or sell cannabis in Vermont. However, retail sales will be permitted once licenses are distributed, beginning in October 2022.

Guam – Legalization approved April 2019

• Adults over the age of 21 can possess up to one ounce of cannabis. 
• Adults over the age of 21 can grow a total of six plants, but only three can be mature.
• Retail sales are still illegal, but adults can gift up to one ounce of cannabis.

Illinois – Legalization approved May 2019

• Illinois residents over the age of 21 can possess up to 30 grams of cannabis, and 5 grams of concentrated cannabis/products containing up to 500mg THC. 
• Non-residents over the age of 21 can possess half of the above amounts while within Illinois state limits.
• Public consumption is illegal.
• Cannabis sales tax in Illinois is based on the products’ THC content. Products that contain more than 35% THC are taxed at 25%; products with less than 35% THC are taxed at 10%. Cannabis-infused products are taxed at 20%. Local municipalities can choose to levy an additional tax of up to 3%.

New Jersey – Legalization approved November 2020

• Adults over the age of 21 can possess up to six ounces of cannabis.
• Cannabis sales are subject to state and local taxes, with excise tax amounts depending on the cost per ounce.
• The state’s existing medical marijuana commission governs the recreational market.

Montana – Legalization approved November 2020

• Adults over the age of 21 can possess up to one ounce of cannabis.
• Adults over the age of 21 can grow two plants, with a total of four per residence. 
• Recreational cannabis is taxed at a rate of 20%.
• Retail sales/licenses will go into effect on January 1, 2022.

South Dakota – Legalization approved November 2020

• Adults over the age of 21 can possess and distribute up to one ounce of cannabis for medical purposes.
• Although recreational cannabis was approved by voters, Governor Kristi Noem submitted a lawsuit in October of 2021 to block the measure. A final decision will be made by the state Supreme Court.

Arizona – Legalization approved November 2020

• Adults over the age of 21 can possess and transfer up to one ounce of cannabis.
• Adults over the age of 21 can grow up to six plants (at their primary residence only), with a maximum of 6 plants total per residence. 
• Smoking marijuana is illegal in public and open spaces.
• A 16% excise tax is applicable to retail cannabis sales.

New York – Legalization approved March 2021

• Adults over the age of 21 can possess up to three ounces of cannabis.
• Individuals with marijuana-related criminal offenses can pursue measures to have their records expunged.

Virginia – Legalization approved April 2021

• Adults over the age of 21 can possess up to one ounce of cannabis.
• Adults over the age of 21 can grow up to four cannabis plants for personal use.
• Regulations for retail sales of recreational cannabis in VA have not yet been established.

New Mexico – Legalization approved April 2021

• Adults over the age of 21 can possess up to two ounces of cannabis.
• Adults over the age of 21 can grow up to six plants, with a limit of 12 per household.
• State-licensed recreational cannabis dispensaries can begin retail sales as of April 1, 2022.

Connecticut – Legalization approved June 2021

• Adults over the age of 21 can possess up to 1.5 ounces of cannabis on their person, in addition to 5 ounces in their home or vehicle.
• Low-level marijuana offenses can be expunged.
• Retail sales are not expected to begin until the summer of 2022 or later.

Is marijuana legal at the federal level?

No, marijuana is still illegal at the federal level. Currently, marijuana is classified as a Schedule I drug under the Controlled Substances Act. This classification means that, officially, the federal government does not believe cannabis to have any medical purpose. Understandably, this is a major point of frustration for cannabis advocates, medical marijuana patients, and many healthcare providers.

Possessing, distributing, and cultivating cannabis is still a violation of federal law.

Technically, states that have legalized cannabis (medical or recreational) have done so in conflict with federal law. However, the federal government has largely opted out of enforcing marijuana laws in states where cannabis is legal. 

What is the Cole Memorandum?

The Cole Memorandum was issued by the Justice Department in 2013 and remains one of the most influential and important memos on the topic of federal cannabis enforcement to this day. It states that the Justice Department will not challenge individual states’ cannabis legalization laws, instead of placing the responsibility of effective enforcement to the states.

In 2018, then-Attorney General Jeff Sessions elected to rescind the Cole Memorandum. He instructed federal prosecutors to rely on established principles and their own legal judgment when deciding whether to pursue to decline the prosecution of cannabis charges. Even so, in the majority of cases, the Justice Department has declined prosecution of individuals in compliance with their state laws.

What does decriminalization mean?

Decriminalization is the reduction of penalties for a specific crime. It can also be used to refer to the process of recategorizing a criminal offense as a civil offense. 

As of October 2021, 32 states and the District of Columbia have enacted measures to decriminalize low-level marijuana possession offenses (Marijuana Policy Project). In many of these states, first-time offenders no longer face possible jail time (a criminal record or fine is still possible in some states). In others, changes have been that make possessing a small amount of marijuana a civil offense rather than a criminal one. 

Where does the public stand on the issue?

An overwhelming majority of Americans support legalized cannabis, which is a powerful indication of the progress that has been made. 

According to a 2021 report from Pew Research, 91% of U.S. adults are in favor of legalizing cannabis either for medical or recreational purposes. About 60% support medical and recreational cannabis, while just 31% say that only medical marijuana should be permitted. This means that less than one in 10 adults is against legal cannabis in any form.

When you compare that to data from the year 2000, the percentage of Americans that are pro-legalization has more than doubled.

How to Market a Cannabis Business the Right (and Legal) Way

Even as cannabis legalization efforts gain momentum nationwide, there’s still a long way to go before cannabusinesses have complete access to all forms of marketing. Dispensaries, cannabis product manufacturers, and other marijuana-focused businesses must take a smart, strategic approach to digital marketing – especially if they want to stake their claim in the rapidly-expanding industry.

Marijuana Marketing Xperts provides specialized marketing for cannabis businesses, utilizing our cannabis industry expertise to help our clients flourish. Our services include cannabis SEO, social media, content creation, and more, all powered by dedicated experts that excel in their fields. Together, we’ll devise a tailored cannabis marketing strategy that flawlessly fits your needs, maximizing your results and delivering an outstanding return on your investment. You can look forward to measurable growth and the ability to achieve (and exceed!) your goals.

As a growing number of states legalize cannabis, the opportunity to build a thriving business only continues to grow. Don’t let your chance pass you by: launch an effective strategy for marketing your CannaBusiness today!

For more information about how cannabis marketing can benefit your business, contact the Marijuana Marketing Xperts team today.

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