Search Results for: marijuana tax

Giambra Says Marijuana Tax Revenues Could Deliver $500 Million A Year

New Revenue Stream Could Help Rebuild State, Says Gubernatorial Candidate

NEW YORK:  “Conservative projections of an estimated $500 million a year in initial marijuana tax revenues for New York State could leverage enormous economic impact across the board and help rebuild our state,” says former Erie County Executive Joel Giambra, an independent candidate for governor who believes the time has come to legalize the sale of marijuana.

“Nine other states have taken this step and medical marijuana is legal in 29 states,” says Giambra, who is seeking the Reform Party line for governor.  “Other states are poised to take action and according to Arcview Market Research, one of the top market research firms for the cannabis industry, legal marijuana sales were expected to hit $9.7 billion in North America in 2017 (final numbers not available yet).  We need to take marijuana off the black market and cultivate an entrepreneurial economy in New York State instead of crushing our citizens with more onerous taxes to feed the Albany political pipeline.”

Giambra said that based on research he has commissioned that he is releasing today, an excise tax of 13 percent in addition to the existing state and local sales taxes on legal adult marijuana would generate $500 million a year and could finance state bonding of $12.2 billion over five years.

“The money generated from legalizing marijuana would go a long way toward dealing with our state’s crumbling roads and bridges and help with the equally daunting challenge of fixing the broken New York City metropolitan transit system,” said Giambra.  “Legalizing the adult use of marijuana is a cornerstone of my campaign for governor.  I pledge that if I win election, it will be one of my major priorities because of the immediate economic benefits it can produce.”

Giambra said according to his analysis, every $1 billion spent on infrastructure will create 13,000 jobs directly in construction and among suppliers and thousands more indirectly, leading to more than 244,000 new jobs over seven years.

“This is a plan to rebuild New York without continuing to raise taxes,” said Giambra.  “There’s another billion dollars in taxes and fees already projected in the Albany pipeline this year to deal with a deficit estimated of at least $4.4 billion.  I think the citizens have had enough.  Let’s take marijuana off the black market, like other states have, and begin to phase in that new revenue stream and put that money to work for the people of New York.”

Legalization of marijuana also has strong public support as a 2017 Gallup Poll showed that 64 percent of Americans favor legalization, with a majority of Republicans backing it for the first time.

Upon the enactment of the cannabis regulation, Governor Giambra will ensure – if need be, by the power of the pardon – that all non-violent marijuana convictions are expunged and all individuals currently incarcerated for non-violent marijuana crimes are released as immediately as is practicable. Minorities in New York continue to face marijuana arrests nearly 10 times the rate of whites.

 

 

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Recreational Marijuana Tax Begins In Oregon

OREGON: Starting this week, recreational marijuana sales in Oregon will be taxed at 25 percent.   Ever since medical marijuana dispensaries began selling recreational pot on October 1, the sales have been tax-free.

The 25 percent tax applies to all recreational sales through the end of 2016.

Later this year, the Oregon Liquor Control Commission will start licensing retail stores. Stores that become licensed will have a reduction in their pot sales taxes — to 17 percent.

Local governments can also adopt an additional local tax up to three percent.  Since October, sales have been limited to what cannabis produces, such as leaves, flowers, and seeds.

Medical Marijuana Taxes To Illinois Total $57K In 1st Month

ILLINOIS: Illinois officials say the state’s first medical marijuana patients have purchased nearly $801,000 worth of cannabis during the program’s first month.

Program director Joseph Wright announced the figures Wednesday. The numbers indicate Illinois has collected roughly $56,550 in taxes from wholesale sales of medical marijuana during the month. Marijuana wholesalers pay a 7 percent tax to the state.

Wright says licensed dispensaries have served 1,713 unique patients. That’s nearly half the 3,600 patients who have been approved for the program.

Legal marijuana sales began Nov. 9 in Illinois. There are now 16 licensed dispensaries operating in Illinois.

Weighing Enforcement And Black Market, City Introduces Marijuana Tax

ALASKA: The Anchorage Assembly is introducing a measure to tax marijuana when sales become legal in the year ahead. The proposal hinges, however, on voter approval in April.

Though it’s still several steps away, Assembly members are proposing to eventually tax marijuana retail sales at five percent.

Ernie Hall chairs the committee that’s been looking at how to tax cannabis products within the municipality, and said the figure is a preliminary estimate of what the city will need to collect in order to pay for the licensing and enforcement costs that come along with opening new businesses.

“This is drafted where if we start at five and we find out we’re not covering the expense of this industry we can adjust it two percent at a time over a number of years,” Hall explained after the committee meeting adjourned Thursday evening. The Assembly would only be able to change the percentage taxed every two years.

Oak Park, IL Votes Down Medical Marijuana Tax

ILLINOIS: Oak Park won’t have its own tax on medical marijuana if a dispensary planned for Lake Street opens up later this year.

The Oak Park Village Board unanimously voted against a tax on the drug during its Monday meeting, with trustees saying they didn’t want to add another burden to ill people who are prescribed marijuana.

Trustees unanimously voted 6-0 against the proposed 6 percent tax, which would only have applied to the soon-to-open Seven Point dispensary planned for 1140 Lake St. Trustee Colette Lueck was absent.

Revenue From Colorado Marijuana Tax Expected To Double In 2015

COLORADO: It’s heady times in the Mile High City, and that’s just at the state budget office.

Colorado is on track to more than double the state’s marijuana tax revenues this year, showing up the $44 million collected in 2014 with a projected 2015 windfall of $125 million, reports The Guardian. The state hoped to collect $70 million in 2014, but fell short.

According to financial data released last week, the state also raked in significantly more money taxing marijuana than it did taxing alcohol for the yearlong period of July 2014 to June 2015, with marijuana netting almost $70 million and alcohol just under $42 million.

Colorado’s Marijuana Tax Revenues Nearly Double Last Year’s Figures

COLORADO: Legal marijuana tax revenues have been breaking records in Colorado this summer, nearly doubling monthly numbers from last year and on pace to exceed projections of legal sales that bring revenue back to the state.

Through the first seven months of this year, Colorado has brought in nearly $73.5m, putting the state on pace to collect over $125m for the year.

In 2014, experts predicted legal cannabis would bring in upwards of $70m to the state’s tax coffers. In reality, the state collected just $44m in marijuana taxes.

Sales totals fell short of projections in 2014, the first year of legalized recreational sales in the state (and the nation) But this year, tax revenue from marijuana sales is exceeding initial projections of $70m.

Pioneer Pot States Have Collected More Than $200 Million In Marijuana Taxes

WASHINGTON AND COLORADO: The first two states to legalize recreational marijuana have collectively raked in at least $200 million in marijuana tax revenue, according to the latest tax data — and they’re putting those dollars to good use.

In Colorado, after about a year and a half of legal recreational marijuana sales, the state has collected more than $117 million in excise taxes from both the recreational and medical marijuana markets, according to the most recent data from the Colorado Department of Revenue.

Washington state got a slower start. Its retail shops didn’t begin selling recreational marijuana until July of last year, but they are keeping pace with Colorado’s. About $83 million in excise taxes have already been collected in the year since sales first began, according to the most recent tax data from the Washington State Liquor and Cannabis Board.

 

Overhaul Of Marijuana Taxation Goes To Washington Governor

WASHINGTON:  Recreational marijuana buyers would pay a flat 37 percent pot tax, plus sales tax, under a proposal headed to the desk of Washington Governor Jay Inslee.

The measure easily cleared the state Senate Saturday after passing the House Friday. It would eliminate the three-tier tax system approved by Washington voters in 2012. Instead, consumers would pay a single tax at the point of sale.

The measure would also ban marijuana use in a public place and ban marijuana clubs. And it would change the name of the Liquor Control Board to the Liquor and Cannabis Board.

 

Colorado Cuts Marijuana Tax, Targets Black Market, While Oregon Eyes 20% Tax

COLORADO:  Colorado is leading again, this time with a permanent tax break on recreational marijuana. The state is lowering the tax from 10% to 8% effective in July 2017, a move that could cut into Colorado’s black market. Colorado was the first state to legalize marijuana for recreational use, and now it’s passed a marijuana tax relief. There is even a one-time tax holiday on September 16, 2015, from the 10% state sales tax.

Gov. John Hickenlooper signed the provisions into law, noting that this should lower the price of legal cannabis. A voter initiative is set too. The question for voters is whether Colorado can keep the estimated $58 million in pot taxes collected this fiscal year. Colorado’s Taxpayer’s Bill of Rights—TABOR—requires the state to issue refunds to taxpayers if the state’s spending or revenue collections exceed the previous projections. To try to avoid the refund requirement, legislators introduced HB 15-1367, creating a ballot initiative to allow Colorado voters to approve of the state keeping the $58 million in marijuana revenue.

Regardless of whether the ballot initiative passes, Colorado did lower the sales tax on marijuana from 10% to 8% beginning July 2017. Eliminating the sales tax for just September 16, 2015 meets constitutional obligations. But even that one day tax hiatus has a price. The tax holiday is expected to cost about $100,000, plus $3.6 million for a one-day elimination of the 15% excise tax.