California Collects (up to) $100 Million In Marijuana Sales Taxes (Anually)

[Drunken Savior]

I changed the title of the article slightly to make it more....well...honest....

Originally Posted by http://www.tokeofthetown.com/2010/05/california_collects_100_million_in_marijuana_sales .php

California Collects $100 Million In Marijuana Sales Taxes
By Steve Elliott in Dispensaries, News

California is collecting between $50 million and $100 million a year in sales taxes from medical marijuana, according to the California Board of Equalization, confirming an estimate previously published in an economic analysis by California NORML.

The numbers were also independently confirmed by patient advocacy group Americans for Safe Access.

The state's retail market for medical marijuana has surpassed $1 billion per year, according to California NORML estimates, with a total adult use market of $6 billion.

An initiative to legalize and tax cannabis for adult use will be on this November's ballot in the Golden State.

Marijuana opponents, led by Los Angeles County District Attorney Steve Cooley, have tried to choke off the state's lucrative medical marijuana market by claiming that all marijuana sales are illegal.

The stand stands to lose tens of millions of dollars in sales tax revenues and millions more in enforcement costs if Southern California's dispensaries are closed, according to Cal NORML Director Dale Gieringer.

"Marijuana prohibition is a losing proposition for California's taxpayers," Gieringer said. "On one hand it costs the state to arrest, prosecute, and imprison marijuana offenders, and on the other it deprives the state of valuable tax revenues."

Adult use legalization could net the state some $1.4 billion in revenues, according to California's Legislative Analyst's Office, or more than $1.2 billion by California NORML's estimate.

And yet we still issue I.O.U.'s to some state workers. This news absolutely thrills me, because one of the arguments people have made for legalization is that the government benefits from the added tax revenue. In exchange, tokers don't have to worry about the man (well, the CA local/state police) getting down on them. I'm sure the exchange is welcomed.

But now there are actual numbers, from the California government, to cite. Our budget crisis is really hurting a lot of the (good) social programs in our state, like the schools. Any help towards getting a balanced budget is encouraging.

[MarionetteKazuk]

If toke I must, then toke I shall.

[Drunken Savior]

One thing to keep in mind is that if California does legalize marijuana, the federal government can come down on them. The Controlled Substances Act of 1970 takes precedent over state laws, so if the Feds decide to come down, then it'll get ugly fast. However, the Attorney General, Eric Holder, did ease up federal pressure on medical marijuana when they could have just cited federal law trumping state law. And ultimately, it's this guy who will decide if the federal government will come down on California if it legalizes marijuana.

Lastly, if legalization does pass, it'll be interesting to see what employers will do. Marijuana is still a mind altering substance and when used irresponsibly, can lead to mistakes. Needless to say that if your toking becomes a health concern or a liability, it'll be your weakness regarding your employment status.

It'll be very interesting to see what happens. The opponents of legalize marijuana have a lot of money to throw towards advertising the evils of legalization.