One of the leading arguments for legalization of recreational marijuana use is the potential for state and federal tax revenues. According to recent reports, if all states moved to legalize marijuana for recreational use, they could be collecting over $3 billion per year in tax revenues. The NerdWallet report projected a total of $3.1 billion per year. Of all the states, California is forecasted to benefit the most from recreational use legalization. According to their projections, California could rake in more than $519 million per year through recreational use marijuana taxation.
Whether you are pro-legalization, a medical marijuana card holder, or marijuana dispensary owner, it is important to understand the potential tax benefits and regulatory changes that could take place in the state of California. Our Orange County marijuana dispensary attorneys are committed to staying abreast of all legal chances and in providing strategic and committed advocacy to California residents. In addition to helping individuals and businesses ensure compliance with the law, we are also abreast of regulatory changes and can represent clients who are under investigation or charged in a criminal matter.
In addition to California, other states would stand to significantly benefit from legalization, according to the report. Seven states would accrue an additional $100 million in tax revenues and another 25 states could potentially take in another $20 million per year. The NerdWallet analysis estimated a flat tax on recreational marijuana (15%) which is equivalent to the current taxation rate in Colorado. The projections also included additional state and local taxes when calculating their figures. In addition to tax revenue, states will also benefit from medical marijuana sales revenues and the reduced spending for drug crime enforcement.
The NerdWallet analysis estimated sales in each state using national surveys that calculate use of marijuana in each state. The national studies determines the number of consumers over the age of 25. The analysis used these figures to estimate the number of pot users in each state and then applied these numerical values to the total U.S. population. According to reports, the U.S. marijuana market is estimated at $14 billion which could mean a significant windfall for states if they are able to capitalize.
Though states are likely to tax marijuana differently, the figures project significant tax revenues in California and nationwide. Colorado has already seen a significant revenue boost, though the numbers are lower than initially projected. If other states continue to legalize medical marijuana use and recreational use, the U.S. marijuana industry is likely to reach $8 billion to $10 billion in legal sales by the year 2018. Only two states (Colorado and Washington) have legalized recreational use, but 23 have legalized medicinal marijuana. Oregon and Alaska will vote on legalization in November. Florida voters will vote on medical marijuana use this fall.
As marijuana laws continue to change at the local, state, and federal levels, individuals and businesses should stay abreast of their rights as well as legal obligations. An experienced advocate can keep you informed while also preventing state or federal criminal liability.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 714-937-2050.
More Blog Entries:
Getting Started in the Medical Marijuana Industry, May 15, 2014, Los Angeles Marijuana Lawyer Blog
Employers Continue to Discriminate for Medical Marijuana Use, May 11, 2014, Los Angeles Marijuana Lawyer Blog