Report: Tax Revenue From Retail Marijuana Sales Exceeds Expectations
Tax revenue collection from retail marijuana sales in Colorado, Oregon, and Washington is exceeding initial projections, according to a new report published by the Drug Policy Alliance.
Marijuana-related tax revenue in Colorado totaled $129 million over the 12-month period ending May 31, 2016 – well exceeding initial estimates of $70 million per year, the report found. In Washington, tax revenue totaled $220 million for the 12-month period ending June 30, 2016. Regulators had initially projected that retail sales would bring in $162 million in new annual tax revenue. In Oregon, marijuana-related tax revenues are yielding about $4 million per month – about twice what regulators initially predicted. (Alaska has yet to begin collecting tax revenue from cannabis businesses.)
The report also finds that adult use marijuana legalization has not been associated with any increases in youth use of the substance, nor has it had an adverse impact on traffic safety. “In Colorado and Washington the post-legalization traffic fatality rate has remained statistically consistent with pre-legalization levels, is lower in each state than it was a decade prior, and is lower than the national rate,” it determined. A separate report published by the CATO Institute recently provided similar findings.
In addition, the new reports finds that marijuana-related arrest totals have fallen significantly in jurisdictions post-legalization. According to the DPA’s report, the total number for all annual marijuana-related arrests decreased by 59 percent in Alaska, by 46 percent in Colorado, by 85 percent in the District of Columbia, and by 50 percent in Oregon. In Washington, the number of low-level marijuana court filings fell by 98 percent.
To read the full report, please click here.
October 17, 2016