16 July 2009

Legalize marijuana, collect $1,400,000,000 in revenue

That's the prospect facing the state of California.
California tax officials have found that a state bill to tax and regulate marijuana like alcohol would generate nearly $1.4 billion in revenue.

A State Board of Equalization report released Wednesday estimates marijuana retail sales would bring $990 million from a $50-per-ounce fee and $392 million in sales taxes.

The bill introduced by San Francisco Democratic Assemblyman Tom Ammiano in February would allow adults to legally possess, grow and sell marijuana.
The numbers shown apparently do not even include the savings of time/salary currently expended by law enforcement officials and the judiciary in seeking and prosecuting offenders under current law.

4 comments:

  1. Sales tax revenues in the Netherlands (16 million people / 130.000 daily users) are 564 million USD (400 million euros) per annum for marihuana, so that sounds about right.

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  2. Unlike tobacco and alcohol, it is easy for the average consumer to grow a usable product at home. I think a lot of consumers would bypass the state monopoly by growing their own. If home cultivation is made illegal when pot is decriminalized, how much would it cost the state to pursue growers? Especially small scale growers?

    ReplyDelete
  3. Re: Tracy

    Following that line of thinking, how many people do you know grow their own tobacco to limit the taxation of cigarettes?

    ReplyDelete
  4. Re: Anon

    much easier to grow a quality pot plant than tobacco. at least that's my experience watching some people's attempts.

    ReplyDelete

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