Legal Marijuana Could Bring in $643 Million Tax Haul in First Year

This week Governor Jerry Brown said that California could yield an estimated $643 million in excise taxes on recreational marijuana in its first full year of legalization in the state. 

These estimates were published in the budget proposed for the fiscal year beginning July 1. The projections are not as high as the previously expected $1 billion annually. This year, with only six months on the rolls, marijuana tax is only expected to bring in $175 million. 

“The amount and timing of revenues generated from the new taxes are uncertain and will depend on various factors including local regulations, and cannabis price and consumption changes in a legal environment,” Brown’s budget says. 

Marijuana advocate groups are calling on the state to make the pot more affordable in order to engage users. Failing that, they say that the state's black market will continue to flourish and take away from the taxable money spent. 

Read more at the LA Times

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