3 Surprising Industries That Would Benefit if Marijuana Was Legalized

When it comes to fast-growing industries, there may be none with better growth prospects than marijuana. Based on some estimates, legalizing marijuana across the country could lead to a $35 billion market. Separately, NerdWallet has suggested that legalizing marijuana would generate around $3.1 billion in annual tax revenue for states and potentially the federal government.

Where are we now? Colorado recently announced that monthly marijuana sales topped $100 million for the first time ever in August, putting its marijuana industry on pace for more than $1 billion in annualized sales. In Washington state, retailers sold slightly more than $257 million over the first trailing year of recreational marijuana sales. Oregon just started selling recreational marijuana legally as of Oct. 1, 2015, and shops there registered about $11 million in retail sales during its inaugural month.

In other words, the U.S. marijuana industry right now is likely generating around $1.5 billion to $2 billion in annual sales, inclusive of medical and recreational marijuana, but could still have growth potential of around 2,000% based on those aforementioned estimates.

7 States That Would Earn The Most Money By Legalizing Marijuana

MICHIGAN:  Some of us are still processing this whole marijuana legalization deal. For many people, it’s kind of hard to believe legalization is actually really happening — it’s no longer simply a topic of discussion marijuana smokers debate over, it’s right here and right now. Imagine going back in time and telling yourself 10 or 15 years ago that in 2014, recreational pot would be legal in some parts of the country. It’s kind of surreal.

Colorado recently published its tax revenue figures for the month of August. Recreational marijuana sales continue to increase in the Centennial state. Based on these tax figures, we can see that from January to August, recreational pot sales rose from $14.02 million to $33.07 million — sales more than doubled over this short time period. Perhaps Colorado citizens needed a little bit of time to adjust to the new law, as well. It may have felt a bit strange at first to walk into a shop without any medical card or prescription and say to the clerk, “May I please buy some marijuana?” and have the clerk respond with, “Absolutely, what kind would you like today?”

 As time goes on, legalization may just become the new norm. Although there are certainly downsides, recreational legalization has taken those millions of dollars out of the pockets of black market drug dealers and placed it into the legal economy. Washington state has already made the decision to go legal, and other states may very well follow suit. Here are the states that can financially benefit the most from legalizing pot. These numbers are based on a NerdWallet report, marijuana use data from the Substance Abuse and Mental Health Services Administration (SAMHSA), and other resources.
**The NerdWallet report determined each state’s tax rate by adding a 15% excise tax to state and local tax figures compiled by the Tax Foundation. The report found each state’s market size by determining what portion of the $14 billion total marijuana market each state would theoretically encompass. This is based on how many marijuana users (expressed as a percentage) are in that particular state. Numbers are rounded.

 

California Would Take The Most In Taxes From Legal Marijuana

CALIFORNIA:  Economic forecasters note that if all 50 US states legalized Marijuana this year, collectively the government/s would  be taking  more than $3-B a year in taxes.

That according to NerdWallet (NW) a finance consultant that forecast a total $3.1-B annual take for state governments that legalize Marijuana.

California would take the most from legalization.

NerdWallet projects California would generate more than $519-M per year, NW points out that the amount is nearly enough to fund the Y 2013 budget for California’s Department of Parks and Recreation.

 

Report: Marijuana Legalization Could Bring In Over $8.7 Million In Tax Revenue

DISTRICT OF COLUMBIA:  In a little more than a month, District residents will vote to decide if they want to legalize marijuana. While polls show that a majority of D.C. residents favor marijuana legalization, there’s still a small population that opposes it.

Among the reasons the group, called T.I.E. D.C., don’t want pot legalized is the potential huge amounts of money both corporations and the government stand to gain from the taxation and regulation of marijuana. The problem, however, is that Initiative 71 doesn’t include any provision for taxation and regulation. If it did however, D.C. could stand to gain a lot of money in tax revenue. About $8,769,904 per year, according to report from NerdWallet.

Based on that data, NerdWallet estimates that D.C. could pull in $8,769,904 in tax revenue for legalizing marijuana with a taxation and regulation system. To put that in perspective, D.C. raised $5,166,000 in tax revenue for alcohol sales in 2012, according to the Tax Facts report for 2013. The estimated tax revenue for alcohol in 2013 is $5,630,000 and $5,517,000 for 2014.

You can access the NerdWallet study here: