The bill will be submitted to the House of Representatives for a decision.Should the House approve the bill, Vermont will become the first state to legalize marijuana through legislation.
The revenues will provide additional support for drug treatment, prevention and enforcement of laws and regulations.
Additionally, the bill does not allow the sale of marijuana edibles and home cultivation.
Forbes reported the bill was passed by a vote of 17 to 12 in the Senate.
The bill paves way for the creation of a taxed and regulated system of selling marijuana.
Starting 2018, only state-licensed growers and merchants can cultivate the plant and operate businesses.The state of Vermont will collect 25 percent excise tax from the marijuana industry.