As more and more states legalize marijuana for medical and recreational use, federal state and local governments are in for a tax bonanza, according to a new pair of reports from the nonprofit Tax Foundation.

While there's a bubble-like sense of profit hype surrounding the burgeoning cannabis business, one of the two reports notes that "marijuana tax collections in Colorado and Washington have exceeded initial estimates," according to a statement from the tax organization.

"A mature marijuana industry could generate up to $28 billion in tax revenues for federal, state, and local governments, including $7 billion in federal revenue: $5.5 billion from business taxes and $1.5 billion from income and payroll taxes," the foundation says in its report, "Marijuana Legalization and Taxes: Federal Revenue Impact."

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Dennis Romero ~ LA Weekly ~