The Cost of Sin: States May Impose So-Called Sin Taxes to Raise Revenue

Many states join in a slow and steady trend of adopting sin taxes to raise revenue. To start, a number of states have legalized the use of recreational marijuana and tax sales of the product as a means to generate substantial amounts of revenue. Cities like Philadelphia and Seattle turn to soda tax for its ability to generate revenue, while at the same time promoting a societal good. Those darn calories! Further, in response to the U.S. Supreme Court’s 2018 Murphy v. NCAA decision declaring the Professional and Amateur Sports Protection Act unconstitutional, states have been legalizing sports betting activity and enacted corresponding taxes. See Murphy v. NCAA, 138 S. Ct. 1461 (2018).

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