Senators Want Feds To Make Sure Dispensary Cannabis Is Safe CATO Institute- Republicans and Federal Marijuana Policy Cannabis growers are trying to adapt to plunging retail prices Cannabis Compounds Could Replace Anti-Anxiety Meds Why Trump Can’t Beat Cannabis 98% of Americans live in a state with some form of Legal Cannabis Cannabis Prices Rocket in Nevada as Shortage Continues Cannabis Industry Statistics Neil deGrasse Tyson Says Cannabis Should Be Legal RICO Lawsuit Threatens Cannabis Industry Cannabis May Ease Nerve Pain – Study Legal Cannabis States Try To Slow Smuggling Cannabis Popularity Continues to Grow Among Adults NBA Star Zach Randolph Arrested On Marijuana Charges During Mob Fracas Even With Legal Cannabis, California’s Black Market Will Remain Huge NFL to work with players’ union to study marijuana for pain How California Can Utilize Surplus Cannabis As Trump wages war on legal weed, military veterans side with cannabis There Are More Legal Cannabis Workers Than There Are Dental Hygienists Cannabis or Marijuana? High Hopes Ride on Cannabis Amid Opioid Crisis Jesse Ventura Is Fighting To Legalize Marijuana California expands marijuana rules, will allow deliveries Study: Cannabis users tend to be more successful, happy Cannabis could be a $5-billion boon to the state — but many users may stay illegal Rescheduling Marijuana: How it Works California could be a ‘sanctuary state’ from federal cannabis laws Older Women and Medical Cannabis: A Growth Industry France to Decriminalize Cannabis Possession, Interior Minister Says Epilepsy drug derived from marijuana is close to federal approval Vermont Governor Rejects Marijuana Bill, Wants Changes Marijuana App ‘WeGrow’ Wants To Bring Flower To The People States move fast to protect marijuana industry American Legion to Trump: Allow cannabis research for vets Washington law paves way for organic marijuana market Oregon Economic Forecast Includes Marijuana For The First Time No sanctuary for cannabis in California New Jersey mom turns marijuana into money Women have lead role in new marijuana businesses in Washington State Want to be a budtender? Here’s How. Marijuana May Boost, Rather Than Dull, the Elderly Brain Trump Rejects Congress as He Signals Medical Marijuana Fight The Cannabis Industry Is Getting Super-Sized 87% Of Players Say NFL Should Allow Medical Marijuana Access Pot brownies could lose potency under proposed California rules Cannabis Prices Get Higher After Recovering From 2016 Bust Study proves the importance of using Medical Cannabis The Trump crackdown on legal marijuana might not happen Varying marijuana laws pose questions for air travelers Marijuana – Miracle treatment for children with autism Marijuana workers get the California seal of approval Is Legal Marijuana the Last Bipartisan Cause in America? Marijuana activists vow to smoke and get arrested on steps of U.S. Capitol Most Americans Support Pro Athletes Using Marijuana for Pain Relief California Cannabis Is Going Industrial Trump’s drug czar pick has strong “no” vote record on marijuana Billions In Marijuana Taxes Are Addictive To State Governors The Holy Land of Medical Marijuana Oregon lawmakers vote to block cannabis users’ info from feds Marijuana legalization grows closer with Senate tax proposal Jerry Jones’s marijuana proposal could save NFL players’ lives The problem with America’s marijuana DUI laws John Oliver – Update Federal Marijuana Laws The way people buy legal marijuana will change in 2019 DOJ Wants Information On Colorado Marijuana Cases Oregon lawmakers introduce laws to protect legal recreational marijuana Public support for legal marijuana surged in 2016 Federal Marijuana Hostility Wrong Addiction Specialists Ponder a Potential Aid: Marijuana Dozens of industries could see a boost from legal marijuana Oregon May Declare Emergency Over Jeff Sessions’ Marijuana Threats Maximizing the Medical Effects of Marijuana Marijuana Legalization Opponents Were Wrong Oxford University announces new £10m medical marijuana research program Pro-marijuana church in Alabama: Members tout ‘God and cannabis’ Every State Could Legalize Marijuana by 2021- The Motley Fool 25% of US beer drinkers have switched to marijuana or would if it was legal Colorado Rep. 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Billions In Marijuana Taxes Are Addictive To State Governors

Marijuana Taxes

marijuana taxes

States are addicted to marijuana taxes. According to a new report from New Frontier Data, states with legalized marijuana are on track to generate approximately $655 million in state taxes on retail sales in 2017. Within that tax figure, $559 million will come just from cannabis taxes, much more than from alcohol taxes.

The report also forecasts that tax revenues in states with legalized marijuana will reach $1.8 billion, of which $1.4 billion will be from cannabis specific taxes. This money isn’t easily replaceable if the Department of Justice reviews its current approach to marijuana. Plus, the Trump administration is calling for deep cuts in many programs with its proposed budget and this puts further pressure on state governors to continue providing services its residents have come to expect.

“In an era of dwindling state resources, when we are looking to smaller governments, and an administration at the federal level that is looking to end funding to states in numerous ways, the discovered revenue from regulated legal cannabis markets can be a lifesaver to local law enforcement, substance abuse counseling and other social services,” said Leslie Bocskor of Electrum Partners. According to Bocskor, states are fighting the Justice Department’s new war on drugs for purely fiscal reasons because the overall economic impact has been much higher than anyone expected.

“That the states’ economies are feeling the effects on real estate, the effects on the job market, the effects on travel and hospitality and the effects from a reduction in taxpayer burden from the criminal justice system,” Bocskor explained. The direct cannabis taxes combined with the indirect taxes such as income tax on newly created jobs and retail taxes on consumer spending from these new jobs has created a tax boom.

Bocskor is right about the unexpectedly large amounts of tax revenue. In Colorado, the state saw a 57.2% increase in the total marijuana taxes collected from FY 2015-16 to FY 2016-17 year-to-date as of January. The retail sales tax alone increased 51.4% for the same period. The state collected $119 million in taxes as of January for its year-to-date fiscal year. Compare this to only $38 million collected on alcohol of at least 11 months in 2016. The money is being put to good use by the state. For example, Colorado was able to put $16 million towards Affordable Housing Grants and Loans in 2016 from cannabis tax collections.

Many states view the cannabis industry as a vice and tax it at a high rate and the industry accepts it as a cost of doing business. It has paid off handsomely for the states that have legalized marijuana. Washington state’s cannabis retail tax rate is 37%. The state’s total tax obligation for fiscal year 2016 is $185 million and that is expected to increase 25% to $233 million for fiscal year 2017. California will be charging 15% and the state believes it will generate $1 billion and up to $100 million in savings annually. Some of the areas the money will go to include the California Highway Patrol, research, community programs, environmental restoration and law enforcement.

“This tax revenue is very important to them. It’s three times as much as alcohol tax and it has quickly become entrenched in the budget,” said Brian Vicente of Vicente Sederberg Law Firm, a firm that specializes in marijuana law. “These governors are fighting the federal government over marijuana laws for two reasons. The first is economic, meaning tax revenue and jobs. The second reason is that it’s a better use of law enforcement’s time.” He is referring to law enforcement being able to put more time towards violent crime as opposed to low-level marijuana possession arrests.

With virtually every poll showing most Americans approve legalization and governors becoming dependent on marijuana taxes to balance the budget and provide more state services, it will be hard to convince these states that rolling back legalization is a good thing.

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