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The term "green economy" could take on a new meaning thanks to the Massachusetts medical marijuana law. State coffers may be enriched by administrative fees. New business opportunities could mean more jobs and tax income.
And that may only be the start if Massachusetts legalizes pot for recreational use someday.
The state relaxed marijuana-possession laws in 2008, decriminalizing possession of one ounce or less.
In November, voters approved a ballot question to make the medical use of marijuana legal in the state. The law, which takes effect Tuesday, will allow as many as 35 medical marijuana distribution centers in the state.
"Certainly, some people will get jobs, and there will be some revenue from the sale of marijuana," said Harvard University economist Jeffrey Miron, a longtime advocate for the legalization of marijuana. "Exactly how that works out, whether it's a lot or a little, depends exactly on how it's implemented."
Legalizing medical marijuana has been a boon to some states' economies. Arizona has seen an estimated $40 million in additional tax revenue per year. How much California nets from its law is uncertain, but some estimates are as high as $100 million a year.
To see revenue anywhere near those amounts, Massachusetts would need to make substantial changes in the medical marijuana law that goes into effect Jan. 1.
The nonprofit status of medical marijuana dispensaries in Massachusetts would make their earnings tax-free, and with marijuana being a prescription drug, pot sales would be tax-exempt for consumers. In terms of additional tax revenue, the state can only count on income tax from dispensary employees.
The state could collect licensing fees from dispensary operators; it's a common practice in the 16 other states with medical marijuana laws.
"I don't want to say there are no economic impacts, but those are pretty modest," Miron said, talking about the situation in Massachusetts.
Registration fees for dispensaries vary from state to state, from a low of $5,000 in Arizona to a high of $20,000 in Vermont. Many states also charge dispensaries yearly license renewal fees equal to or higher than the original licensing fee. No states provide current figures on the total take.
Many states require patients to apply for medical marijuana cards, charging fees ranging from $25 in Alaska and Hawaii to $200 in Oregon.
Some states, including Oregon and Nevada, are able to fund their medical marijuana programs entirely with fee revenue, making the programs budget-neutral.
Whether Massachusetts charges any fees will be determined by the state Department of Public Health.
Whatever the revenue figure, it would likely pale when compared with revenues that would come from legalized recreational pot.
In Colorado and Washington, where recreational marijuana just became legal, the projections for marijuana revenue are eye-catching.
The Colorado Center on Law and Policy predicts $60 million in revenues and savings (from reduced law enforcement costs) for the state by 2017. In Washington, the state Office of Financial Management is projecting $1.9 billion in revenue from recreational marijuana over the next five years.
For now, though, any impact that the new medical marijuana law is going to have on Massachusetts will largely be attributable to the legal availability of pot rather than the size of the state's cut.
"These are all just changes in exactly where people are getting the marijuana," Miron said. "They're not fundamental changes in the size of the industry or the nature of the industry."
News Hawk- TruthSeekr420 420 MAGAZINE
Source: patriotledger.com
Author: Edward Donga
Contact: The Patriot Ledger Contact Us
Website: Medical marijuana could boost Massachusetts economy - Quincy, MA - The Patriot Ledger
And that may only be the start if Massachusetts legalizes pot for recreational use someday.
The state relaxed marijuana-possession laws in 2008, decriminalizing possession of one ounce or less.
In November, voters approved a ballot question to make the medical use of marijuana legal in the state. The law, which takes effect Tuesday, will allow as many as 35 medical marijuana distribution centers in the state.
"Certainly, some people will get jobs, and there will be some revenue from the sale of marijuana," said Harvard University economist Jeffrey Miron, a longtime advocate for the legalization of marijuana. "Exactly how that works out, whether it's a lot or a little, depends exactly on how it's implemented."
Legalizing medical marijuana has been a boon to some states' economies. Arizona has seen an estimated $40 million in additional tax revenue per year. How much California nets from its law is uncertain, but some estimates are as high as $100 million a year.
To see revenue anywhere near those amounts, Massachusetts would need to make substantial changes in the medical marijuana law that goes into effect Jan. 1.
The nonprofit status of medical marijuana dispensaries in Massachusetts would make their earnings tax-free, and with marijuana being a prescription drug, pot sales would be tax-exempt for consumers. In terms of additional tax revenue, the state can only count on income tax from dispensary employees.
The state could collect licensing fees from dispensary operators; it's a common practice in the 16 other states with medical marijuana laws.
"I don't want to say there are no economic impacts, but those are pretty modest," Miron said, talking about the situation in Massachusetts.
Registration fees for dispensaries vary from state to state, from a low of $5,000 in Arizona to a high of $20,000 in Vermont. Many states also charge dispensaries yearly license renewal fees equal to or higher than the original licensing fee. No states provide current figures on the total take.
Many states require patients to apply for medical marijuana cards, charging fees ranging from $25 in Alaska and Hawaii to $200 in Oregon.
Some states, including Oregon and Nevada, are able to fund their medical marijuana programs entirely with fee revenue, making the programs budget-neutral.
Whether Massachusetts charges any fees will be determined by the state Department of Public Health.
Whatever the revenue figure, it would likely pale when compared with revenues that would come from legalized recreational pot.
In Colorado and Washington, where recreational marijuana just became legal, the projections for marijuana revenue are eye-catching.
The Colorado Center on Law and Policy predicts $60 million in revenues and savings (from reduced law enforcement costs) for the state by 2017. In Washington, the state Office of Financial Management is projecting $1.9 billion in revenue from recreational marijuana over the next five years.
For now, though, any impact that the new medical marijuana law is going to have on Massachusetts will largely be attributable to the legal availability of pot rather than the size of the state's cut.
"These are all just changes in exactly where people are getting the marijuana," Miron said. "They're not fundamental changes in the size of the industry or the nature of the industry."
News Hawk- TruthSeekr420 420 MAGAZINE
Source: patriotledger.com
Author: Edward Donga
Contact: The Patriot Ledger Contact Us
Website: Medical marijuana could boost Massachusetts economy - Quincy, MA - The Patriot Ledger
