Oregon's Secretary of State has officially approved New Approach Oregon's marijuana legalization initiative for the 2014 Election ballot. One question that will no doubt be asked over and over is 'how much tax revenue will it generate?' ECONorthwest released an analysis today that is the first I've seen that provides an estimated figure. Below is their press release:
A comprehensive analysis released today by ECONorthwest, has found that marijuana regulation in Oregon would generate $38.5 million in excise tax revenue in the first full fiscal year of 2017. In the first biennium (2017-19), it would generate $78.7 million.
The study specifically examines regulated sales of marijuana under the "Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act" that Oregonians are expected to vote on in November 2014.
According to the analysis, most of the marijuana would be bought at retail outlets; however, 3.22 percent of the marijuana consumed would be grown at home as outlined in the Act.
The analysis is narrow, only investigating the direct fiscal impacts generated through the excise tax. The report does not examine the operational impact of the courts, police or jails.
Under the measure, 40 percent of the tax revenue collected would go to schools; 35 percent would go to state and local police; and 25 percent would go to drug treatment, prevention and mental health programs.
According to the Seattle Times, in the first 10 days of marijuana sales in Washington, the state has taken in $318,000 in excise taxes.
A graphic representation of the findings, executive summary and full report are available on ECONorthwest's website.