ziggy29
Moderator Emeritus
How much tax revenue would legalized marijuana yield?
Proposition 19: Changes California Law to Legalize Marijuana and Allow It to Be Regulated and Taxed. Initiative Statute.
So what seem to be saying is, they really don't know because they don't how (a) how much "cheaper pot" will increase consumption or (b) what level state and local government will tax it.It is also unclear how the legalization of some marijuana-related activities would affect its overall level of usage and price, which in turn could affect the level of state or local revenues from these activities. Consequently, the magnitude of additional revenues is difficult to estimate. To the extent that a commercial marijuana industry developed in the state, however, we estimate that the state and local governments could eventually collect hundreds of millions of dollars annually in additional revenues.