Legalizing marijuana could bring in $2 billion for Washington
SEATTLE (AP) - The state's latest financial analysis says legalizing and taxing marijuana could bring Washington as much as nearly $2 billion over the next five years — or as little as nothing.
The Office of Financial Management released its fiscal impact statement for Initiative 502 on Friday, and the results track closely with its earlier analysis, released in March.
I-502, which will be on the November ballot, would legalize pot under state law and allow its sale at state-licensed stores, with tax proceeds dedicated to education, health care and substance abuse prevention. Oregon and Colorado voters will also decide on marijuana legalization measures this fall.
Marijuana would remain illegal under federal law, however, and it isn't clear how the federal government would respond if any of the states voted to legalize it. The Justice Department could prosecute employees of state-licensed pot shops, sue in federal court to block the laws from taking effect, or simply seize the tax revenue from the states as proceeds of transactions that are illegal under federal law.
Because the federal response remains unclear, Washington's analysts said they could not determine the ultimate effect of I-502 on the state's finances. However, they said, assuming a fully functioning marijuana market develops — and that it entirely replaces the existing illicit market — state revenue from pot sales could be more than $1.9 billion over the next five years. The state typically spends $30 billion per two-year budget cycle.
I-502 would create a system of state-licensed growers, processors and stores, and impose a 25 percent tax at each stage. People 21 and older could buy up to an ounce of dried marijuana, one pound of marijuana-infused product in solid form, such as brownies, or 72 ounces of marijuana-infused liquids.
The analysis anticipates 100 state-licensed growers supplying 328 marijuana stores that would sell more than 187,000 pounds to at least 363,000 customers. Those numbers are based on federal drug-use surveys.
Consumers would pay $12 per gram — the price currently charged by many medical marijuana dispensaries — plus the 25 percent marijuana tax, 10 percent state sales tax, and any local sales tax, the analysts assumed.
The document noted that Washington would likely lose some federal money to fight drugs, such as a marijuana eradication grant from the Drug Enforcement Administration.
However, the analysis did not take into account any possible savings from no longer arresting, prosecuting and jailing people for having small amounts of marijuana, and Alison Holcomb, campaign manager for I-502, said she found that disappointing.
About 10,000 people in Washington are charged with misdemeanor marijuana possession each year.
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Johnson can be reached at https://twitter.com/GeneAPseattle
Copyright 2012 The Associated Press.
Estimates show that marijuana is Americaâs number one cash crop. However, marijuana remains untaxed. This is a new source of income for our nation, an income we desperately need.
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Over 500 of the nationâs top economic professors have shared their opinion in supporting the removing the prohibition and imposing the taxation and regulation of marijuana as a way to slow the federal deficit.
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Ending marijuana prohibition would save the US $7.7 BILLION annually. That is nearly as much as Congressâ proposed Budget Control Act. Think of the jobs it would create, the court time I would save and the jail space it would free up for actual criminals.Â
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Sign the petition below. Also, create a group, this will connect every member directly to their elected officials.
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http://www.youtube.com/watch?v=-_tUy6fylQs
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@electedface You may need pot, we do not need any new taxes for any reason.
An ounce of marijuana would cost well over $400 dollars! That's too much and nuts! Tax it maybe 5% but no more.Â
It's so stupid to fight marijuana; it is effective, safe, and has over a thousand years of use. Marijuana is a very healthy food if taken as an edible, not smoked. There is a great $2.99 e-book on medical marijuana: MARIJUANA - Guide to Buying, Growing, Harvesting, and Making Medical Marijuana Oil and Delicious Candies to Treat Pain and Ailments by Mary Bendis, Second Edition. This book has great recipes for easy marijuana oil, delicious Cannabis Chocolates, and tasty Dragon Teeth Mints. Â
Legalize pot, tax it to make it cost prohibitive, then use the IRS to arrest the "Potshiners" for tax evasion, use RICO to seize and confiscate all their assests. Felony tax evasion for longer sentences. that is what I see, never trust the government, be prepared for the consequences of legalization, any one plant or possession without a tax stamp would reap the maximum penalty.Â
Sorry these numbers are very far off. First of all pot is cheaper then that right now. As soon as it is legal no one is going to pay $12.00 a gram. Two billion dollars that is a fantasy.
 @givupongod well if we also count the fiber industry,and we take into count the loss of jail time and court etc and the tourist industry from the smokers tired of dealing with it in their state.maybe 2 billion isnt so far off .ok ok 500 million
It might be wise to think of all the ramifications. Stop, look and listen, before you start to kickin.
A study by a Harvard economics professor has proposed a range of $2 to $6 billion revenue from Federal taxation of marijuana. Law enforcement savings to the Fed and states would be about $8 billion.  This would add up to a net increase in revenue of $10 to $14 billion per year. (Source: Dr. Jeffrey Miron [2005] "The Budgetary Implications of Marijuana Prohibition") Non-drug hemp agriculture would be worth another $6 to $10 billion.
See some people are starting to THINK about it ..,.Really it's not that hard to imagine all the income thats possiable=)
 @IAMHIGH the illegal dealers and industries dont want it legalized they make way to much money off of it