Loading

revenue

  • by Paul Armentano, NORML Deputy Director July 20, 2018

    A fiscal report issued by the state’s Auditor General estimates that taxing Pennsylvania’s existing retail cannabis market would yield $581 million in new annual revenue.

    The report estimates that just under 800,000 Pennsylvanians are currently using cannabis. Statewide polling finds that a majority of voters endorse legalizing and regulating its use by adults.

    “The benefits of regulating and taxing marijuana are undeniable,” the report concludes. “As its neighbors weigh the issue, Pennsylvania must act to create its own marijuana market. Otherwise, it runs the risk of losing the revenue from potential customers to other states. It is time for Pennsylvania to stop imagining the benefits of marijuana and realize them.”

    Pennsylvania’s Auditor General Eugene DePasquale has previously spoken in support of statewide legalization. Governor Tom Wolfe has expressed support for decriminalizing marijuana possession offenses, but has been reluctant to endorse legalizing the marijuana market.

    Full text of the report, “Regulating & Taxing Marijuana: A Special Report on the Potential Revenue & Financial Benefits for Pennsylvania,” appears online here.

  • by Paul Armentano, NORML Deputy Director July 20, 2017

    Marijuana ScienceRevenues from Colorado’s legal cannabis industry have surpassed over a half-billion dollars since retail sales began on January 1, 2014.

    According to an analysis by VS Strategies, cannabis-related taxes and fees have yielded $506,143,635 in new state revenue over the past three and one-half years. (Local tax revenue was excluded from the analysis.) Much of the revenue raised has gone to fund school construction projects, school-drop out and substance abuse prevention programs, and grant funding.

    The half-billion dollar total far exceeds initial projections. Tax revenue from legal cannabis sales in Oregon and Washington have also exceeded regulators’ initial expectations. In Nevada, where retail sales to adult became legal on July 1, retailers reported over 40,000 transactions in just the first weekend.

  • by Allen St. Pierre, Former NORML Executive Director May 7, 2015

    A new report by the Institute of Taxation and Economic Policy (ITEP) adds considerable information to the base knowledge accumulating at the state level on new changes in laws and custom regarding cannabis legalization circa 2013, starting in the states of Colorado and Washington after citizens voted to end cannabis prohibition via binding ballot initiatives.

    The ITEP report joins other mainstream reviews and analysis of changes in cannabis laws from The Brookings Institution, RAND Corporation and Drug Policy Alliance.

    ITEP’s principle donors are found here.

     

  • by Allen St. Pierre, Former NORML Executive Director August 27, 2014

    majority_supportOur friends at High Times (and former NORML director Dr. Jon Gettman) are running an online poll asking for consumers’ choice regarding the preferred marijuana distribution that emerges post-prohibition.

    Legal Marijuana: Which Market Do You Prefer?
    As we approach the new inevitability of legalized cannabis, three models have been proposed for a national marijuana market.
    By Jon Gettman

    In the past, the goal of marijuana legalization was simple: to bring about the end of federal prohibition and allow adults to use the plant without threat of prosecution and imprisonment. But now that legalization is getting serious attention, it’s time to examine how a legal marijuana market should operate in the United States.

    Below are descriptions of the three kinds of legal markets that have emerged from various discussions on the subject. We would like to know which one you prefer.

    First, though, let’s touch on a few characteristics that all of these proposals share. In each one, the market has a minimum age for legal use, likely the same as the current age limits for alcohol and tobacco. In each of these legal markets, there will be penalties for driving while intoxicated, just as with alcohol use. You can also assume that there will be guaranteed legal access to marijuana for medical use by anyone, regardless of age, with a physician’s authorization. The last characteristic shared by all three mar- kets is that there will be no criminal penalties for the adult possession and use of marijuana.

    Proposal #1:
    Government-Run Monopoly
    Under this approach, there would be no commercial marijuana market allowed. Marijuana would be grown and processed for sale under government contracts, supervised and/or managed by a large, government-chartered nonprofit organization. Marijuana would be sold in state-run retail outlets (similar to the state-run stores that have a monopoly on liquor sales in places like Mississippi, Montana and Vermont, among others), where the sales personnel will be trained to provide accurate information about cannabis and its effects. Products like edibles and marijuana-infused liquids with fruity flavors would be banned out of a concern that they can encourage minors to try the drug. There would be no advertising or marketing allowed, and no corporate or business prof- its. Instead, the revenue earned from sales would pay for production costs and the operation of the state control organization; the rest of the profits would go to government-run treatment, prevention, education and enforcement programs. Regulations would be enforced by criminal sanctions and traditional law enforcement (local, state and federal police). No personal marijuana cultivation would be allowed. The price of marijuana would remain at or near current levels in order to discourage underage use.

    Proposal #2:
    Limited Commercial Market
    Under this approach, the cultivation, processing and retail sale of marijuana would be conducted by private companies operating under a limited number of licenses issued by the federal government. Advertising and marketing would be allowed, but they would be regulated similar to the provisions governing alcohol and tobacco promotion. Taxation would be used to keep prices at or near current levels in order to discourage underage use. Corporate profits would be allowed, and tax revenues would be used to fund treatment, prevention, education and enforcement programs. Regulations would be enforced by criminal sanctions and traditional law enforcement (local, state and federal police). No personal marijuana cultivation would be allowed.

    Proposal #3:
    Regulated Free Market
    Under this approach, entrepreneurs would have open access to any part of the marijuana market. Cultivation, processing and retail operations could be legally undertaken by anyone willing to bear the risks of investment and competition. Advertising and marketing would be allowed, but they would be regulated similar to the provisions governing alcohol and tobacco promotion. Prices would be determined by supply and demand, with taxation set at modest levels similar to current taxes on alcohol, tobacco and gambling. (These vary widely from state to state, but assume that under this model, the price of marijuana would be substantially lower than it is in the current market.)

    Also, home cultivation would be allowed. Licenses may be required for any sort of cultivation, but these would be for registration purposes only and subject to nominal fees based on the number of plants involved. Individuals and corporations would be allowed to make whatever profits they can through competition. Tax revenues would fund treatment, prevention, education and enforcement programs. Competition and market forces would structure the market rather than licenses or government edicts, and regulatory agencies rather than law enforcement would supervise market activity.

    A Different Approach
    There are two key issues when it comes to deciding among these proposals. First, should the price of marijuana be kept high through government intervention in order to discourage underage use as well as abuse? Second, does commercialization translate into corporate money being spent to convince teenagers to use marijuana? Many of the proposals for how a legal market should operate are based on assumptions about these two issues, which leads to recommendations that the government must, one way or another, direct and control the marijuana market.

    Obviously, the first two proposals outlined above reflect those very concerns. The third takes a different approach, in which marijuana is treated like similar psychoactive commodities, and the public relies on education, prevention and age limits to discourage underage use as well as abuse.

    We want to know what type of legal marijuana market you prefer. Please take part in our poll on the HIGH TIMES website.

  • by Erik Altieri, NORML Executive Director February 24, 2014

    On Friday, more than 40 state lawmakers in Maine co-signed a memo authored by State Representative Diane Russell that was delivered to the Appropriations & Financial Affairs Committee. The memo encouraged the committee to keep all options on the table in their upcoming financial deliberations, including potential tax revenue derived from an adult, non-medical market for marijuana.

    “All options should be on the table,” Rep. Russell stated in the memo, “In this spirit, we propose committee members give serious consideration to the revenue options associated with legalizing, taxing and regulating cannabis for responsible adult use.”

    The memo was signed by prominent elected officials in the state including Majority Leader Troy Jackson (D-Allagash), House Majority Leader Seth Berry (D-Bowdoinham), Minority Whip Alex Willette (R-Mapleton), House Chair of Criminal Justice and Public Safety and former County Sheriff Rep. Mark Dion (D-Portland), and House Health and Human Services Committee Chairman Richard Farnsworth (D-Portland).

    In 2013, the Maine House of Representatives fell just four votes short of approving a measure introduced by Rep. Russell which would have placed the issue of marijuana legalization before voters during the fall elections.

    Last week, initial tax revenue estimates for the sales tax on recreational marijuana in Colorado were estimated to be just shy of 100 million dollars, far higher than the initial 70 million dollar estimate given to voters in 2012.

Page 1 of 212