7 States That Would (or Could) Earn the Most Money by Legalizing Marijuana

Posted on 05-28-2015 by
Tags: Trending News & Topics , Drug Law Evolution & The Workplace , trending news

The legalization of marijuana has been a source of disagreement between users and the government. In fact, a recent LexTalk discussion about which is a better path for marijuana – decriminalization or legalization – has sparked a rampant debate a variety of opinions being shared.

While marijuana has been partially or fully legalized in various states, this slow movement begs to ask the question: Which state will be the next to legalize marijuana?

While we may not know the answer anytime soon, Business Cheat Sheet said these states would earn the most money by legalizing it:

1. California

Marijuana market size: $2.2 billion

Tax rate (state and local sales taxes combined) plus excise tax of 15%: 23.41%

Potential annual revenue from sales and excise taxes: $519.3 million

 

2. New York

Marijuana market size: $1 billion

Tax rate (state and local sales taxes combined) plus excise tax of 15%: 23.47%

Potential annual revenue from sales and excise taxes: $248.1 million

 

3. Florida

Marijuana market size: $848.33 million

Tax rate (state and local sales taxes combined) plus excise tax of 15%: 21.62%

Potential annual revenue from sales and excise taxes: $183.4million

 

4. Texas

Marijuana market size: $718.4 million

Tax rate (state and local sales taxes combined) plus excise tax of 15%: 23.15%

Potential annual revenue from sales and excise taxes: $166.3 million

 

5. Illinois

Marijuana market size: $544.5 million

Tax rate (state and local sales taxes combined) plus excise tax of 15%: 23.16%

Potential annual revenue from sales and excise taxes: $126.1 million

 

6. Ohio

Marijuana market size: $556.3 million

Tax rate (state and local sales taxes combined) plus excise tax of 15%: 22.11%

Potential annual revenue from sales and excise taxes: $123 million

 

7. Michigan

Marijuana market size: $581.27 million

Tax rate (state and local sales taxes combined) plus excise tax of 15%: 21%

Potential annual revenue from sales and excise taxes: $122.1 million

If you are interested, find out what your colleagues have to say about which is a better path for marijuana – decriminalization or legalization? Join the conversation >>

 

 

 

 

 

Comments


Michael Held
Michael Held
Posted on : 26 Aug 2015 4:06 PM

Why would Illinois tap into this revenue source when Cook County can just double property taxes? We already have medicinal marijuana, does this analysis exclude revenue from those sales?

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