Legalization of Marijuana: How Much Money Are We Talking About?

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By Kimberly “KG” Farrell

With so many states legalizing the medical or recreational use of marijuana (technically called cannabis), you might be wondering what legalization could do for your state financially. I checked out four states that legalized recreational use of marijuana early in the game. Here is what I found:

Colorado reached $1.02 billion in Marijuana tax, license and fee revenue since it legalized in 2014, according to the Denver Post.

Colorado uses the money to fund mental health services, youth literacy initiatives and anti-bullying programs in schools as well as $10 million on education, prevention of drug abuse programs and research into long term effects and benefits of cannabis use. Colorado has 2,917 licensed marijuana businesses and 41,076 licensed individuals working in the industry. That’s a lot of new jobs!
California reports $635 million in state and local cannabis tax revenue. That includes $538 million remitted to the state, and another $100 million to local sales tax coffers according to Leafly (a website self-described as The world’s leading destination to find, order, and learn about cannabis.) Similar to what Colorado is doing with its tax windfall, California uses the tax revenue to fund programs beneficial to its residents. This includes youth anti-drug programs, the environment and public safety grants. By Leafly’s count 47,822 new jobs were created in California.

Washington State collected a total of $395.5 million in legal marijuana tax income and license fees in fiscal year 2019 according to Washington State Treasurer Duane A. Davidson. Nearly half of all marijuana revenues fiscally for 2015-2019 went to the Basic Health Plan Trust Account, a state run healthcare plan for low income individuals otherwise not covered. Other uses include research and prevention. Washington has had 33,521 new jobs created.

Oregon has collected nearly $255 million since 2017 according to the Portland Business Journal. In Oregon, schools get 40% of the revenue made by tax and licensing and the remainder is used for the state’s Mental Health, Alcoholism and Drug Services account, the Oregon Health Authority for alcohol and drug abuse prevention as well as a few other programs. The state has welcomed over 13,000 new jobs.

Only 8 states remain without some form of legalization. Federally, any use or sale of cannabis is illegal. However, The MORE Act, a bill that Leadership of the House of Representatives will be voting on as early as September 2020, is calling for The removal of cannabis from Schedule I of the Controlled Substances Act. It would expunge the records of those with prior marijuana convictions and It would also take us toward resentencing those currently incarcerated. I for one hope it passes! Incidentally, this bill was sponsored by the newly announced Vice-Presidential Candidate for the Democratic party, Kamala Harris.

Farrell is the author of two suspense novels: 411 Apple Tower Rd a frightening tale about a child predator who chooses the wrong victim and Messanie Hill based on a true story of a house that has more than memories lurking within its walls. You can purchase copies of both books HERE.

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