One of the big selling points of legalizing marijuana is the tax revenue. Small towns and big towns alike can fix glaring problems, all thanks to cannabis…
For cannabis legalization, some of the holdups are worrying about dispensaries being too close to schools, packaging not being child resistant, and not being able to accurately test impaired drivers.
Having said that, the big selling point is the tax revenue marijuana brings in.
For example, in the first full year of recreational sales, Nevada brought in $70 million in tax revenue. Of that money, $27.5 million went to schools, and money from the state’s 10% excise tax at retail goes to a rainy day fund.
Rainy day funds are used to help state governments keep up with providing important services during economic declines.
It’s still early, so there just hasn’t been enough time to judge how well these states are using their cannabis tax revenues.
However, early indications show that not only are cannabis sales taxes helping to build things like new schools and roads – they are bringing entire communities back to life.
Folks are starting to understand what new cannabis tax revenue could do for their town, and the federal government will be forced to recognize the will of the people. That’s why one prominent figure is going all in on cannabis.
Cannabis Is Turning Entire Communities Around
Before Colorado legalized recreational marijuana in 2012, the small town of Pueblo was struggling. The city’s primary employers were prisons and hospitals, and the town was trying to recover from its collapsed steel industry.
Pueblo had the highest unemployment rate in Colorado, which at the time was several points higher than the state average.
With full recreational legalization, that has all changed.
In 2015, more than one-third of construction projects in Pueblo County were tied to marijuana.
Researchers at Colorado State University Pueblo found that legal cannabis sales brought in $58 million in 2016, and the county created a scholarship that would send graduating seniors to local universities.
One sector of the cannabis market is on track to grow 15 times faster than the cannabis industry as a whole in this year alone. To find out more, go here now.
The city did invest $23 million to lay the groundwork for legal cannabis, but it still saw a $35 million economic impact in 2016.
On top of that, cannabis sales are expected to bring in $100 million annually by 2021 for Pueblo.
For a city that was on the fast track to ruin, this is a striking example of the power of cannabis tax revenue at work.
On top of that, researchers did not find any evidence that poverty has either increased or decreased since legalization. Normally, some opponents of cannabis legalization suggest that it can increase homelessness.
Unleashing the Profit Floodgates
As you know, one of the big triggers to unleash cannabis profits will be full legalization.
In fact, Illinois just legalized recreational marijuana, and a Delaware house committee recently approved a bill that would do the same for “The Diamond State.”
Thanks to legalization, cannabis companies can increase their sales and become multi-state operators, more cannabis companies can go public, and the winners will be separated from the wannabes.
There’s still work that needs to be done, but we’re getting there.
Remember that folks still need to be educated about the benefits of cannabis – we’re not too far from a time when it was viewed as something immoral to use. But aside from all the money and economic benefits this industry can bring, it is helping change lives for the better.
We love hearing how cannabis-based medicine is helping you, and we are especially glad to hear how it is helping those who have bravely served our country.
Executive Director, National Institute for Cannabis Investors
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June 10 2019