California Tax Board Weighs In On Marijuana Reform
Today, the California Board of Equalization (BOE) released its analysis of state Assembly Bill 390 – legislation that would tax and regulate marijuana.
According to the report, the BOE would collect $1.38 billion annually in new revenue from the sales of legal marijuana, if the legislation is approved. The analysis is based on research that indicates that Californians annually consume about 1 million pounds of marijuana.
$990 million would be generated from a $50/ounce excise tax and would be earmarked for state drug education and treatment programs. An additional $392 million collected in sales tax would go into the state general fund. This report does not address the potential hundreds of millions in criminal justice savings that would be realized if California stopped arresting nonviolent adults for marijuana.
These figures should be raising some eyebrows under California’s capitol dome today as the governor and state legislators are attempting to hammer out a solution to the state’s record $26 billion budget deficit.
Tagged with: AB 390 and Ammiano and California by the author
51 comments
As was stated, this is a conservative estimate of the total amount of money that California would generate by ending prohibition. Marijuana Policy Project, you are bringing this issue to the forefront of public debate. California, it is time.
I will leave you with this: I am no longer living in California. However, today I received a letter from my 70 year old republican father who resides in CA. He stated that he is sick of paying money to enforce a pointless law that only makes the drug cartels stronger and stronger. We are so close. Keep it up MPP!
ooo im so happy lol, we r gettin so close =) Thanks MPP.
If this was passed then would people be flocking to cali to smoke and buy some good bud just like people do in amsterdamn? And if so then the amount of tax revenue would probably triple or quadrouple. Ide like to see them make all the money the want from this beautiful plant.
Yup – we’re winning folks! California’s economy (ranked 5th in the world) is literally on the verge of collapse. Legalization/taxation of marijuana is the booster shot it needs.
Will cali become a tourist state similiar to amsterdam or is there a clause to prohibit the sale to any non california resident? maybe i shouldnt say that cause i would like to travel out to cali and smoke some bud lol
Hopefully these figures are distributed throughout the state, all that’s left is a medical/sociological commission to study the potential health risks/costs to society. As soon as they debunk all of the prohib’s B.S. we can get this thing done for real. All of my state’s other problems aside, I’m still proud to be a Californian especially when it comes to leading the way on this issue.
@ #5 John: It shouldn’t prohibit sales to non-Californians while they’re in California. I mean, would California really say, “No no, b/c you’re not Californian we do not accept your money even though we’re literally neck-deep in debt”? I hope not.
#7 I hope your right bud
This is good news how ever it is still only one more step towards the cause and that being said we must not stop fighting till it is done in all states through out this nation . Even then we must continue to fight to make sure that once our cause has won that it stays legal being they would be more likely to do what they did in history and re-illegalize mj when we get mj legalized and taxed. Any ways our fight for our rights and freedom has and shall continue to make progress hence we must keep on doing all we can for the cause.
There is also another initiative. Filed today. What are MPP thoughts on this?
http://ag.ca.gov/cms_attachments/initiatives/pdfs/i819_initiative_09-0022.pdf
This is fantastic news.
Initiative 09-0022 filed today by the SF Lawyers looks promising.
We will definitely try to rally some support. Go Californians!!
Keep informing the public, it takes time and effort, but you can’t fool all the people all the time, keep bring the truth.
This is great! Push til they got no room to move in then push’em over the edge! Thats what they do to us all the time.
Reading these post,seeing people saying “fight fight fight!” reminds me of a song by none other than the Beasty Boys ” You gotta fight…for your right… to paaarrrdddyyyy!!!
OXFORD MISSISSIPPI HAS MARIJUANA FARM RUN BY THE GOVERNMENT,SO ALL STATES SHOULD HAVE THAT SAME PRIVILEGE AND NO PERSON HAS DIED FROM MARIJUANA
ALSO I WOULD LIKE TO THANK ALL MPP STAFF,SAVING LIFE AND HELPING SICK AMERICANS.ROB KAMPIA, AARON HOUSTON AND BRUCE MIRKEN,YOU GUYS RULE!
We’re not talking chump change here, that’s for sure!
We have been getting a lot of good news lately. Make sure you write or call your legislator supporting HR 2943 Personal Use of Marijuana by Responsible Adults Act of 2009
http://www.govtrack.us/congress/bill.xpd?bill=h111-2943. The more times its in the news, they more news stations pick up on it and educate people on the TRUTH about marijuana.
Good News!
We just received word that both chambers have voted to override the Governor’s veto of SB1058 which sets up a taskforce to discuss changes in Hawaii’s Medical Marijuana Program. Thanks to all of you who made phone calls, sent emails and faxes.
When the official vote is posted, we will let you know who voted “no.” There were nine of them.
We will also ask you to thank legislators for taking this important action and later, we will need to keep pressure on the Dept. of Public Safety to be sure they convene the taskforce.
Jeanne Ohta
Executive Director
Drug Policy Forum of Hawaii
http://news.yahoo.com/s/ap/20090716/ap_on_re_us/us_marijuana_taxes
Even yahoo is reporting on it!!
the thing most people dont take into account is if the whole country legalized marijuana, you would see a drop in crime, drop in hard drug use, drop in alcohol use, drop in prescription drug use…… drop in crime because you lose all the marijuana dealers… there is not enough demand in other drugs to make up the difference…… drop in hard drug use because people no longer go to a drug dealer to get the much more widely used and accepted marijuana….. since it will be grown and regulatet by the state, there will be no dry periods where smokers are more likely to try something different drop in alcohol use because there are so many problem drinkers out there that would love to smoke weed instead but cant because of drug tests and well, they like to call themselves law abiding….. and of course, drop in prescription drug use because marijuana can be used in lieu of many many prescription drugs….. not to mention the fact that if it were fully legalized then it could be extensively researched and we would find other uses for this miracle plant….. all those things together add up to more and more savings all across the board….. i guess it makes too much sense to do this…… i know the feds and locals dont wanna give up thier drug budget, but we need to opt for moving forward and evolving instead of just wanting money…… greed greed greed greed
michael @ #15:
The US Government is operating under the Single convention of 1961 which basically states that “States” (ie. countries – this is an interenational treaty) must have one body to control the cultivation of marijuana.
They interpret this to mean that there can only be one farm in the entire County. There is a contract that goes up for bids and any facilty can apply to be this farm, but University of Mississippi wold probably not lose that contract given the current circumstances. This is way the University of amherst was unable to get approval to cultivate their own marijuana for research purposes.
Personally I interpret the treaty as saying that there needs to be one Federal agency that controls the cultivation. This agency would then regulate the production of individual facilities across the Country.
DarthNole @ 21: that treaty is horribly out dated. i say leave it to the free market, taxed and regulated under the law, of course. My fun example: though I don’t particularly rank fast food as my top choice in meals, I’d rather have the option to choose which fast food I want rather than go to US Government to file paper work to get a hamburger which may take 30 to 90 days… :\
The report also doesn’t take into consideration the increase in income taxes that this bill would also provide. This bill would greatly reduce the underground market in California and would force marijuana dealers to claim income on their tax returns.
If Cali Legalizes Michigan will not be far behind
i live in ca do i need to sign initiative 09-0022?
It will bring in a lot more income and California will be too happy with everybody smiling and acting friendly. I don’t know if prohibitionist will like that?
#10 i just posted that initiative site on my local papers web site in response to an article about trying to limit medical cannabis in the community.
I wish more states would listen to their people and take on this issue, budget crisis or not. The facts show Prohibition is clearly a failed policy and we need to try something else, quit wasting my tax dollars continuing this policy. I love the arguement that the cartels wont want to pay taxes, who’s gonna buy from them when there is a legal option available???
this is what MPP has been trying to do for a long time…. we are in the mist of a sure solution to a government funded freedom lets not drop the ball now folks cali. is going broke and so is the rest of the country HARLEY-DAVIDSON IN MY STATE OF WISCONSIN IS GOING TO SEND FOLKS HOME AND NOT ON PAID VACATION ….maybe mpp could put sum presure on WI.and we could see these hard working folks keep there hard earned pay ..or is this the next american job to get sent to mexico ….i sure hope not maybe mpp and harley-davidson could join forces and have a RUN-FOR-THE-BUDS-TOUR….AND I WANT TO RIDE ALONG ALL THE WAY TO CALI….FROM WISCONSIN …MAYBE THAT WILL OPEN THE COUNTRYS EYES….EX-TEX OVER AND OUT…..
Without a doubt, we need some serious action here in Wisconsin.
I smell Freedom and Liberty in the air. They better get this marijuana taxation/ legalization model right in California the first time so the rest of the states can follow suit. We need desperate action here in Oklahoma where we have the worst marijuana laws in the country.
all i have to say is awesome, lets keep it up guys, remember it takes all of us to make this happen and great job to those who have helped!
Wouldn’t you know, the moment I peep a word about Wisconsin, something actually takes place:
http://www.immly.org/2009-10JRMMA-a.htm
Alright, Wisconsinites. Time to contact your reps!!
This is only the beginning. I hope that when Cali does became a legal marijuana state that all the states in the USA can turn in their direction quick!
I have emailed and called my representative Garry Conolly and I did not like his feedback.
All the people that live in northen virginia in fairfax county should contact their congressman and ask to support the new bills!
this is his website connolly.house.gov.
Call him up and say this to him. Be breif.
Hello, my name is [your name] and I live in [your town, your state].
I’m calling today to
express my support for ending marijuana prohibition.
I’ve seen in the news recently that we could save between $10 and $41 billion every year by taxing and regulation marijuana like alcohol. Doing so would also cut out 60% to 70% of the money currently funding Mexican drug cartels. Our law enforcement resources would be better spent pursuing violent criminals, not going after marijuana users.
[Pause. Allow the congressional staffer an opportunity to state the office’s opinion or ask
for more information about you.]
If possible, I’d like to receive a written response with my representative’s position on
thisissue.
My address is [your address].
Thank you for your time.
Include the DEA, state, and local enforcement budgets toward the marijuana side of The War on Drugs or rather on Americans, and the savings can be counted to blow that number well into double digit billions. The insanity is enough to make someone pull out their hair…
One million pounds taxed at $50 an ounce is $800 Million, not the $990 Million the article indicates. Still a good chunk of change, but let’s not let loose math provide any talking points for the prohibitionists.
Just put a sin tax on it of the current street price, how much money would you make then? Would you stop abducting us if we payed you that much? Is that enough money to be left alone?
No shit, Brew Crew! How much will they charge for a little “prote ction” (from them)? A yearly fee to be left alone! Would you go for it? Or a stack of “get out of jail” cards, say 12 for $100?
I lived in California for ten years from 96-06 and maybe smoked bud twice. Too many other fun things to do out there, e.g. surf, rock climb, mountain bike, snowboarding, ect. that require good phyiscal health and the natural high from those activities carries over for days. Now that I’m back in my home state of Florida I want nothing more than to pack a fat bowl and be relieved from this hot, humid, two dimensional landscape and stagnant misery. It’s all about the escape. California has it all, and because of its progressive natural environment that breeds progressive minds it’s going to rename itself to New Amsterdam. I can think of 30 other states that would be better suited to have marijuana legalized, but because they (like florida) lack that progressive natural environment, they also lack a majority of progressive voting minds. So all eyes on California to help the rest of us find our escape.
For California’s sake I hope this passes. They need all of the help they can get.
I could see less people choosing alcohol with a safer saner alternative available. This would reduce the social and personal costs of alcohol, further adding to the windfall to be had by ending prohibition.
Gee, I wonder how the people who make and sell alcohol feel about that possibility?
MPP and Norml and regular CA voters need to put pressure on Gavin Newsom and Jerry Brown the two leading contenders in the Democratic Primary for Californias Gubernatoral race to support this measure. Even if it’s voted on before the 2010 elections the chance of this passing is near 0 if 2 factors are in place. A: Arnold Scharwz. some other republican or a democrat in republican clothing is governor. B: if the 2/3rds of the legislature required to pass tax amendments affects this. The only way to remedy this is to convince one of the leading 2010 candidates that legalization is a huge issue in california politics and if they want there primary votes they need a pledge from them.
This isn’t just about tax money – this would create jobs, lower the crime rate, and help our country to once again become an economic powerhouse. It would also bring another Constitutional right out of the violated group. Thanks, MPP. You guys are true modern day heroes. I can just hear Paul Revere’s horse every time I get on this site. Props to you.
Can we possibly get numbers on how much INDUSTRIAL HEMP can produce? That’s an argument I never hear. This is just from smokable marijuana. Imagine if we replaced petroleum with hemp!
Legalizing pot faces serious political obstacles, but do not let that keep you from helping the state out. Let me propose for those who endorse legalizing and taxing pot as a means by which to help ease state budget problems – voluntarily pay the tax.
For California (illegal) pot smokers, simply declare on your annual tax return that you purchased X dollars of pot in the prior year, multiply that dollar amount by your local tax rate is, where I live, its 9.25%, and add it to your existing tax liability. Come to think of it, this would work regardless of the illegal drug used – cocaine, methamphetamine, extasy, LSD, heroin, etc. Remember though, our state is broke so be honest about the amount of illegal drugs you buy.
In fact, California like every other state I know has both a sales and use tax. The sales tax is reported and remitted by retailers while the consumer reports and pays the use tax. So when illegal drug users buy dope and don’t pay either a sales or a use tax, they are not only contributing to death and violence such as is going on in Mexico right now, but they are also tax cheats and are helping deprive California of revenues it needs to keep nurses, teachers, police, firefighters and tax collectors, on the job.
Join ranks with medicinal pot users who already pay sales tax. You don’t need to the cowards in Sacramento to legalize your drug addictions to pay the tax you owe, just declare your usage on your tax return.
Take a page from the Gay & Lesbian community and come out of your closet. Do it for your kids.
#45
I think you’re point is that Cannabis users really don’t give a flying flip about helping out the state balance it’s budget, they just don’t want to be thrown in jail for enjoying an evening bong rip. Voluntarily paying state tax on the use of an illegal substance for the purpose of getting high, and declaring how much of that substance(s) was used in a given tax year to come up with a figure on how much tax to pay the state is absurd. Political obstacles, legal obstacles, they will be over come in time. Don’t bet on Cannabis revenues to bail out a state’s budget. It’s a little added revenue, but don’t look to for a solution. Fiscal conservative, responsible and necessary spending is what will ultimately balance anyone’s or any state’s budget. bottom line: live within your means, and don’t toke until 4:20 pm.
well they arent getting a penny now,so ah anybody anybody in CA with just a bit of common sense,lets start with u Arnie
…And why isn’t is legal yet?
“and of course, drop in prescription drug use because marijuana can be used in lieu of many many prescription drugs”
Bingo!
What is the cost of an ounce of marijuana these days? I haven’t smoked in a while and am curious. Wouldn’t a $50 tax plus sales tax on an ounce keep the black market alive and well?
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