According to a new report unleashed by the California Department of Finance, the legalization of recreational marijuana in California could represent approximately $1 billion in new revenue for the cash-strapped state.
Currently facing a wall of debt estimated to be a in the neighborhood of $443 billion, California’s Department of Finance director Michael Cohen, and legislative analyst Mac Taylor, informed Attorney General Kamala Harris that California stands to gain approximately $1 billion in fresh tax revenue – provided voters pass the Adult Use of Marijuana Act (AUMA) and legalize recreational marijuana during November’s general election.
“In total, our best estimate is that the state and local governments could eventually collect net additional revenues that could range from the high hundreds of millions of dollars to over $1 billion annually”, according to California’s top bean counters.
Per AUMA, that new revenue would be spent on:
While $1 billion in new revenue sounds great, the report warns that California’s final savings could fluctuate based on a number of variables; such as countywide bans of all marijuana sales, the current consumption rate declining, and the biggest wildcard of them all…the federal government.
According to the report, the Golden State’s newest financial windfall would be generated by a 15% excise tax on all recreational pot sales, a $9.25 per Oz. tax on the cultivation of all flower, and a $2.75 tax on all leftover plant material.
In addition to cutting the overall state and local governments total expenditures for prosecuting marijuana related offenses, by potentially $100 million annually, individuals previously convicted of marijuana related crimes would be eligible to be resentenced under new guidelines.
Read full report here