Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Wednesday, May 16, 2018

"Estimated Tax Revenues from Marijuana Legalization in New York"

The title of this post is the title of this notable new report released yesterday by New York City Comptroller Scott M. Stringer.  Here is how it gets started: 

In just the past six years, voters in eight states and the District of Columbia have passed ballot measures to legalize the adult use of marijuana.  At least seven more states may follow suit this fall.  In total, over half of states have legalized marijuana for medical purposes since California first did so in 1996.  This dramatic change in public attitudes is reflective of changes as measured by survey data, with 61% of Americans now supporting lifting the ban on marijuana.  More than just a change in attitudes toward marijuana itself, the growing movement for legalization also acknowledges the immeasurable harm done by the criminalization of marijuana use, especially among communities of color.

New York State’s 2014 Compassionate Care Act legalized marijuana for medical use. Legislation to legalize adult marijuana use, the Marijuana Regulation and Taxation Act, has been reintroduced in each subsequent legislative session.  In his Executive Budget for State Fiscal Year 2018-2019, Governor Cuomo proposed a study of the economic impacts of legalization and the implications of continuing to prohibit use while other nearby states move to legalize.  In this report, New York City Comptroller Scott M. Stringer provides an estimate of the fiscal impact of legalizing adult-use marijuana sales in New York.  This report estimates the legal, adult-use marijuana market at some $3.1 billion per year in New York State, about $1.1 billion of that in New York City.  In turn, the Comptroller’s Office estimates that this market could conservatively yield annual tax revenues of as much as $1.3 billion total at the State and City levels.  That assumes a combination of state and local sales and excise taxes in line with what other jurisdictions have passed that could yield up to $436 million in revenues for the State, $336 million for the City, and some $570 million for localities outside of the city.  Of course, the total revenues realized at the State and local levels would depend on the final outcome of any legalization effort.

Beyond the mere dollars that legalization could yield, decriminalization has clear human and societal benefits.  In states where adult marijuana use has been legalized, there have been declines in teenage usage of marijuana, and public health and safety concerns have been addressed.  Finally, misdemeanor marijuana arrests continue to fall most heavily on young Black and Latino New Yorkers, despite a higher reported usage rate among White youth. Erasing the harmful repercussions, including the stigma of a criminal record, would open doors that have been closed to too many for too long, yielding incalculable human, economic, and societal benefits.

http://lawprofessors.typepad.com/marijuana_law/2018/05/estimated-tax-revenues-from-marijuana-legalization-in-new-york.html

Campaigns, elections and public officials concerning reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Taxation information and issues | Permalink

Comments

Post a comment