Legalizing recreational marijuana and establishing a 15 percent tax on it could bring Arizona $113 million in new revenue, according to a study by the non-partisan group Tax Foundation.
The Arizona study is based on sales per capita in Colorado and Washington—both states legalized weed four years ago.
The study says that if all 50 states enforce retail taxes on marijuana, the country could see a revenue of $5.3 billion if taxed at 15 percent, or as high as $8 billion if it’s taxed at 25 percent, according to an article on The Arizona Republic.
In Arizona, a “mature” marijuana industry could raise $113 million every year if weed is taxed at 15 percent; $150 million if taxed at 20 percent; and $188 million if taxed at 25 percent, the study says, according to The Arizona Republic.
The study cautioned officials to not overestimate tax revenue from legalizing the drug, saying revenues started out slowly in Colorado and Washington as their legalization programs and regulatory systems took shape.
The Campaign to Regulate Marijuana Like Alcohol, which is backed by the Washington D.C.-based Marijuana Policy Project, wants to legalize recreational use of weed for adults 21 and over, green light home cultivation of six plants per adult but a limit of 12 per household, allow possession of up to 1 ounce, as well as make available up to 160 licenses for weed retailers. This measure asks to enact a 15 percent tax on retail marijuana sale. The group proposes using the revenue to fund schools maintenance, operation, full-day kindergarten programs, as well as substance abuse awareness programs. (Get to know CRMLA’s initiative here.) The campaign has gathered more than 200,000 signatures.
The second contender, Arizonans for Mindful Regulation, also would legalize marijuana use, possession and cultivation for adults 21 and over. An adult would be allowed to posses 1 ounce of weed and no more than 5 grams in concentrated marijuana, such as oils. Also, an adult could grow 12 plants at home, without a limit on the amount of weed plants that can be cultivated per household, as long as it is under 99. The taxation is set at 10 percent. (Here’s more info on their initiative.) Last time I spoke with the AZFMR guys at the end of March, they said they had gathered more than 100,000 signatures.
Both initiatives need at least 150,642 signatures by July 7 to make the November ballot.
This article appears in May 19-25, 2016.
Thanks, Maria; For the continuation on the Medical Marijuana and legalization efforts.
I do think it strange to deal with values that are just purely hypotheticals. Lets take a moment light up that punch card Tuesday special Blunt/Edible you went across town @ 20 mpg to get. All this monies just out of thin air. Monies that have no other purpose but to develop a department of “Marijuana License and Controls”.
This Department as stated in their own web sites will be immune from all oversight for 6 years!!!! YEA THATS RIGHT 6 YEARS. This Dept will have the right to tax audit license set standards for all sorts of industries that have nothing to do with recreational or Medical Marijuana.
Like the production of hemp (WHY) ? We have the best Arid Agricultural colleges in the world why turn it over to the burden of Marijuana and it’s users? Why stick our heads in the sand and let the DEPT of Licence and controls get into the world commodity market? It is a free market world wide Why would it need to be different here? HMMM.
Vap we see these vap shops all over town never been in one. It is as my understanding that a person gets his boost of flavored nicotine. This is already regulated by the Alcohol and Tobacco board why does this become the burden on the Marijuana user?
Smoke Shops, this is already under the Tobacco, So why are we not asking for the money that the Tobacco have allocated to them ? And the revenue they collect from licence and controls, plus monies that the legislature give to the Alcohol and Tobacco Board that monies duplicated will need to go t the new board or we have conflicting taxation and license DUH.
This is just the tip if the turmoil that this ” Marijuana Department of License and Controls” will do.
I have witnessed in my 40 years working construction from the labor position numerous setup and busts, false information, false truths, false caring. I listened to TumbleWeeds wednesday program they had an EX special Investigator on telling about his awakening. But he would not commit to either one of these but did point out at the conflict because of this type of prohibition.
Cant commit after all his years in the enforcement side. lacks integrity in my view a set up watchout. I wont patronize anything to do with this org.
We all must be very careful, we have people that their whole life have prospered and promoted false police actions, false testimony, false witness, witness setups, waited for Seizure opportunities to cash in on more. However now they want to start a business to help they have seen the error in their way’s. I no longer want to rip them as their is little left. I want to string them set exorbitant prices and continuing on my parasite living standards.
It reminds me of the murder that gets out of prison and become a minister. Stating the error of his ways and the ways to find a good path as to his understanding. That’s why I would not go to Tex Watson’s church or sermon nor buy his book I believe you done wrong you dont have a right to prosper off it.
I wonder just who would want to know a true story where the DEA multi jurisdictional task force set up HUD contracts here in Tucson. Bringing in others from out of state that said they acquired Cocaine here in Tucson. Using local contractors efforts monies and paying he cost of unemployment, sales tax, when these bogus fronts are set up.
The overuse of sugar has created a staggering health crises in the US. When will we tax it according to its burden on society? A burden similar to that of tobacco and alcohol. Yet for cannabis *no* such burden exists.
There was never a reason for cannabis to be illegal. There is likewise now no good reason to continue to punish citizens through a regressive tax for the simple act of purchasing it.
These schemes are not worth it. Not even as the proverbial carrot on the legalization stick.
You are so right on sugar. Just look at the obesity and diabetes problems in the US. They have addicted Americans to it by putting it or high fructose corn syrup in almost every food product. It should be banned from foods. It drives health care costs through the roof while pharmaceuticals make billions trying to delay your decay.