Marijuana Policy Project

Washington State’s independent Office of Financial Management estimates that I-502 will generate approximately $295 million in tax revenue for the state in FY 2014. Looking further down the road, for FY 2017, they estimate that the initiative will generate $564 million for the state in excise and sales taxes.

This report, released August 16, 2012, found that the state would instantly save $12 million for the year following legalization because of reduced criminal costs. The total combined savings and additional revenue will be approximately $60 million, with the potential for that number to double after 2017. The Amendment is also expected to create 372 new jobs.

According to the Maryland Department of Legislative Services, taxing and regulating marijuana will raise approximately $91.3 million each year from the imposed excise tax. Revenues generated from the sales tax will vary based on the retail price of marijuana and the location of the sale, but the Department estimates that revenues from the sales tax will be approximately $37.3 million each year.

The most exhaustive collection of data ever on U.S. marijuana arrests, penalties and related information finds no relationship between marijuana arrest and use rates, while penalty structures act as a price support mechanism that boosts the illegal market.

This analysis by Dale Gieringer and Richard Lee concludes that the medical marijuana business in the city of Oakland, Calif., could contribute tens of millions of dollars to the local economy.