Legalizing the retail production and sale of cannabis in the United States would yield over $3 billion in annual tax revenue, according to an analysis published this week by the personal finance website, NerdWallet.com.
Authors provided a state-by-state economic analysis, taking into account available data estimating marijuana use rates (for those age 25 and older), cannabis market size, and state and local tax rates. Researchers also assumed a flat, 15 percent excise tax on commercial marijuana production. (This excise tax rate is presently imposed in Colorado.)
Based on existing market projections, California would gain the largest amount of annual tax revenue ($519,287,052) were commercial cannabis production and sales to be legalized for adults. Other top tax revenue generating states include: New York ($248,103,676), Florida ($183,408,640), Texas ($166,303,963), and Illinois ($126,107,360).
Washington, which began allowing retail cannabis sales this summer, is estimated to reap some $119,000,000 in annual tax revenue, according to the study’s projections. Colorado, which has allowed retail cannabis sales since January 1, 2014, is estimated to gain some $78,000,000 in annual revenue.
Revenue projections for all 50 states is available online here.
Support NORML and get “Evergreen”, the exciting documentary that tells the story of how Rick Steves and friends helped legalize marijuana in Washington State
Dear NORML members and supporters,
As a board member of NORML I am feeling really good. I’m on a drug policy reform high for four reasons:
- We legalized marijuana in my state (Washington) and in Colorado in 2012. (That gives "the lower 48" a whole new meaning.) And, the Brookings Institution gave it a two-year review and concluded it’s a good thing.
- We plan to legalize in Alaska, Oregon and the District of Columbia this November. (I’ll be spending six days on a 12 city barn-storming tour in Oregon, like I did in Washington two years ago, to explain to the confused and frightened that ending this crazy prohibition of our age is good citizenship).
- There’s a great new documentary movie called "Evergreen" which tells the amazing and behind the scenes story of how a committed band of NORML-types waged our successful campaign and did what no one else until then had been able to do: make the responsible adult recreational use of marijuana a civil liberty. In my state and in Colorado now we can smoke pot just because it’s fun…we can invite our friends over and get high legally. Finally: pot is legal, taxed, and regulated. The movie tracks the political battle from start to finish and travels with me as I bring the NORML view to citizens all over the state–from churches to universities and to our capital dome. (Spoiler alert: the "rumble under the rotunda" is pretty messy.)
- And, you and your friends have a great opportunity to empower NORML to end the war on marijuana in your state too by joining or renewing your NORML membership or even joining up your mother. And, for that $50, we’ll send you a copy of the documentary movie, Evergreen.
This is important. We have momentum. There’s lots more to do. That’s why I’m donating these DVDs to NORML for this campaign. And that’s why I’m packing up and heading to Oregon next month for an intense week of media and lectures. We are a team and you matter. What are you doing? All we’re asking is that you send NORML $50. As a thanks, we’ll send you the exciting Evergreen movie.
I am so proud of what we did in Washington State. I’m proud of what NORML is doing nation-wide. And I’m really excited to offer you this movie on DVD. If you care about legalizing pot, this is something you need to watch. Share it with your friends. It’s an inspiration.
Again, to be among the first in the nation to watch Evergreen, please join NORML for $50 or more to receive your DVD copy of this important documentary capturing a historic change in American politics: When cannabis prohibition first ended.
I am contributing the cost of these DVDs to NORML as my personal challenge to you. I hope you’ll kindly join NORML, view Evergreen with friends and family, share with neighbors, co-workers and locally elected policymakers. I sincerely hope you too find the same inspiration we developed in Washington to get the job of ending marijuana prohibition done, once and for all.
Thanks in advance for your support of marijuana law reform in America and NORML’s long-standing public advocacy work.
Author and TV Host
NORML board member
Willie Nelson is a proud marijuana smoker who stopped using alcohol and tobacco decades ago. Willie, 81, credits his longevity to that decision.
Willie was purposely out of the “marijuana closet” before that became fashionable, or even politically correct. His openness came across as charmingly naive, as if he did not know cannabis was illegal, and could not figure out why others were sometimes upset.
Willie was — and still is — making a political statement that there is nothing wrong with smoking marijuana.
Two issues have always been the focus of Willie’s political attention: helping family farmers remain on the land and legalizing marijuana.
Willie and I have frequently talked over the years about the natural crossover between those two issues. If marijuana were legal for American farmers to cultivate and sell, tens of thousands of family farmers could grow marijuana and financially thrive and remain on the land, continuing the great rural tradition dating back to the founding of our country.
Among those voters age 18 to 40, 47 percent ranked alcohol as the most harmful substance to society, well ahead of both tobacco (27 percent) and cannabis (13 percent). (Thirteen percent of respondents were undecided.) Respondents among all age and ethnic groups were consistent in ranking marijuana as the least harmful of the three substances, as were self-identified Democrats and Independents. (Republicans rated tobacco to be the most harmful of the three products.)
“[These] numbers suggest younger Americans are upending societal conventions, which have long seen alcohol as an acceptable drug while condemning marijuana,” stated Rare.us in an accompanying press release.
The results are somewhat similar to those of a Wall Street Journal/NBC News poll released in March which reported that most Americans believe tobacco to be most harmful to health (49 percent), followed by alcohol (24 percent), sugar (15 percent), and marijuana (8 percent).
Under federal law, marijuana is classified as a schedule I controlled substance, meaning that its alleged harms are equal to those of heroin. Both tobacco and alcohol are unscheduled under federal law.
According to a study published in 2004 in the Journal of the American Medical Association, the leading causes of death in the United States ware tobacco (435,000 deaths; 18.1 percent of total US deaths), poor diet and physical inactivity (365,000 deaths; 15.2 percent), and alcohol consumption (85,000 deaths; 3.5 percent).
A NBC4/Washington Post/Marist poll of DC voters released today revealed strong support for Initiative 71, which would legalize adult possession and limited cultivation of marijuana in the District.
The survey showed 65% support for the initiative amongst likely voters, only 33% were opposed and 2% undecided.
The polling data also showed NORML PAC endorsed DC Attorney General candidate Paul Zukerberg leading the field of five with double the support of his closest competitor.
If these figures hold, the nation’s capital will be getting a whole lot greener come November, with legalized adult possession and an Attorney General committed to pursuing marijuana law reform.
You can learn more about and donate to Initiative 71 at the campaign webpage here.
You can learn more about Paul Zukerberg and how to contribute or volunteer for his campaign here.
If you want to help NORML in DC voter turnout efforts, please email firstname.lastname@example.org with the subject line “Smoke the Vote.”
You can read the full poll results here.