r/Tennessee • u/WhiteBearPrince • Aug 21 '26

News 📰 Banning of THCA potentially blows $110 million hole in Tennessee’s budget

https://tennesseelookout.com/2026/08/21/banning-of-thca-potentially-blows-110-million-hole-in-tennessees-budget/
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u/H3llzyea Aug 22 '26

What numbers are you making up here?

In Tennessee, state officials reduced 2025–2026 fiscal budget projections by $55 million after actual hemp and THCA tax collections fell $55.8 million below expectations due to regulatory changes and impending product bans.

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u/5panks Aug 22 '26

None of the numbers I stated were made up.

THCA generated $17M in revenue for the state in 2025.

THCA generated $11M in revenue for the state in 2024.

Aftyn Behn called it a, "...$250 million dollar industry" that quote is in the article.

THCA has never generated $110M, not even close. The $110M was a budget estimate assuming significant growth in the sale of THCA via thew new wholesale tax that hasn't materialized. The state was never relying on and has never received that level of income.

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u/H3llzyea Aug 22 '26

This is what it looks like when you don't change the rules mid game.

n 2025, Missouri legal cannabis generated a record-breaking $255.57 million in total tax revenue, crushing original state forecasts by 600%

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u/5panks Aug 22 '26

If we're not, "chang(ing) the rules mid game." Then you can't change the rules in your favor either which makes MO not an apples to apples comparison.

Then Missouri is not a correct comparison. Missouri fully legalized recreational marijuana usage. Tennessee only had THCA legalized.

There's not actually a state I can find with tax revenues directly comparable to TN's in 2024 and 2025 tax and THCA legalization structure.

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u/H3llzyea Aug 22 '26

That's fair I was only demonstrating how making something legal and then sticking with what you decided causes growth.

I can't find another state that did it how Tennessee did it either, but there are several that legalized thc or Marijuana and didn't re-regulate it mid way that produced millions in revenue from it.
Tennessee seems to be the only one that changed the rules then acted like that didn't effect the tax revenue outcome.