Legalizing Marijuana Would Provide Millions In Tax Dollars

(The image above is from cannabisculture.com.)

I have written many times before about the legalization of marijuana for recreational use. Marijuana is the most harmless of drugs (far less harmful than almost all legal drugs), and it simply makes no sense to prohibit its possession and recreational use by adults. It just makes criminals of hard-working and tax-paying citizens who are doing no harm to anyone (including themselves).

But there is another effect that legalizing marijuana would have that is not discussed as much, and that is just what a financial boon it could be for both states and the federal government by taxing its legal purchase. Colorado and Washington have already legalized the gentle herb for recreation use and imposed a tax on its purchase, and it is estimated that both states will earn many millions of dollars from that tax -- dollars that will not have to come from citizens through raising some other kind of tax (like property, income, or sales taxes).

All of the other states (and the federal government) could benefit just as much. And it looks like some elected officials are beginning to realize that. There is a petition going around in California right now to put legalization of marijuana on the ballot in November. Here is the wording of that petition approved by the Attorney General of that state. Note especially the words at the end in bold type.

MARIJUANA LEGALIZATION. INITIATIVE STATUTE. Legalizes under state law marijuana use, growth, cultivation, possession, transportation, storage, or sale. Creates commission to regulate, and provide business licenses for, marijuana cultivation, sales, processing, transportation, and distribution. Applies retail sales taxes to marijuana, unless exemptions for medical or dietary uses apply. Allocates revenues equally among education, healthcare, law enforcement/fire, drug abuse education/treatment, commission expenses. Prohibits discrimination against marijuana users or businesses. Requires voter approval to zone beyond set limits. Bars state/local aid to enforce federal or state marijuana laws. Exempts existing medical marijuana collectives from licensing, regulatory, and local zoning requirements. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Reduced costs in the low hundreds of millions of dollars annually to state and local governments related to enforcing certain marijuana-related offenses, handling the related criminal cases in the court system, and incarcerating and supervising certain marijuana offenders. Potential net additional tax revenues in the low hundreds of millions of dollars annually related to the production and sale of marijuana, a portion of which is required to be spent on education, health care, public safety, drug abuse education and treatment, and the regulation of commercial marijuana activities. (13-0025.)