Taxing Marijuana Would Earn California $1.4 Billion
Friday, July 17, 2009
With a $26 billion deficit to fill, California needs to take advantage of something it does more than any other state—grow marijuana plants—according to Democratic Assemblyman Tom Ammiano. The San Francisco lawmaker has introduced AB 390, which would legalize marijuana for anyone 21 and older and tax the sales of it. According to an analysis by the state’s tax board, marijuana retail sales could add as much as $1.4 billion to California’s treasury as a result of taxes and license fees.
Ammiano said, “It defies reason to propose closing parks and eliminating vital services for the poor while this potential revenue is available.” His bill still has a long way to go—it hasn’t even made it out of committee yet—and even if lawmakers embrace Ammiano’s idea, the state might find itself butting heads with the federal government over legalizing marijuana.
The idea has proven popular among some members of the Los Angeles City Council, who are proposing a tax on medical marijuana sales to help close the city’s budget gap.
A recent poll conducted by The Field Poll showed that 56% of registered voters in California favor legalization of marijuana.
-Noel Brinkerhoff
California Tax Officials Estimate Marijuana Legalization Would Bring in Nearly $1.4 Billion (by Marcus Wohlsen, Associated Press)
Analysis of AB 390 (California State Board of Equalization)
The Field Poll (page 7) (PDF)
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