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The state released a wide estimate range Monday for how much tax revenue could be generated by legalizing marijuana this November. The Oregon State Financial Estimate Committee (which includes the Secretary of State, Treasurer and Revenue director) projected between $17 and $40 million in annual revenues. That's $1.5 million more than the $38.5 million estimate ECONorthwest produced for supporters of Initiative Petition 53, and it's also $1 million more than the $16 million estimate the Legislative Revenue Office produced in late July.
"Every economist we have talked to has said this is a new market, and that makes it incredibly hard to predict," said Peter Zuckerman, a spokesman for the New Approach Oregon campaign. "I think what's clear is in a few years this will be tens of millions of dollars for the state." New Approach Oregon's proposal would allow a person to possess up to 8 ounces of marijuana and to cultivate up to four plants. It would also give the Oregon Liquor Control Commission authority to oversee and regulate recreational sales, which would start in January 2016.
Recreational marijuana would be taxed at $1.50 a gram or $35 an ounce, according to the initiative. That money would be used for schools, law enforcement, drug treatment programs and mental health programs. The committee also released agency estimates for the costs of creating and overseeing the new marijuana market. In total, legalizing recreational marijuana would cost the state approximately $3.9 million annually. Here's how those numbers breakdown by agency.
The OLCC estimated that creating a new regulatory system for recreational marijuana would cost the agency $300,000 in fiscal year 2015, $2.5 million in fiscal year 2016 and $1 million in fiscal year 2017. The agency also estimated its annual operating expenses would increase by $3.2 million. Oregon's Department of Agriculture thinks it will need $100,000 annually so the agency can hire one person whose job would be to provide rule making and oversight around marijuana infused food products. The Oregon Health Authority estimated it would spend $200,000 annually to hire and keep two people who would license marijuana facilities and facilities that would test marijuana products. "This estimate assumes 20 such facilities," according to the committee's financial estimate. "New revenues are expected to be sufficient to offset these costs." Oregon State Police told the committee it would need to add three detectives and send certain deputies for additional training at a cost of $400,000 annually.
News Moderator - The General @ 420 MAGAZINE ®
Source: Statesmanjournal.com
Author: Anna Staver
Contact: Contact Us
Website: State estimates revenue, costs for legalizing marijuana
"Every economist we have talked to has said this is a new market, and that makes it incredibly hard to predict," said Peter Zuckerman, a spokesman for the New Approach Oregon campaign. "I think what's clear is in a few years this will be tens of millions of dollars for the state." New Approach Oregon's proposal would allow a person to possess up to 8 ounces of marijuana and to cultivate up to four plants. It would also give the Oregon Liquor Control Commission authority to oversee and regulate recreational sales, which would start in January 2016.
Recreational marijuana would be taxed at $1.50 a gram or $35 an ounce, according to the initiative. That money would be used for schools, law enforcement, drug treatment programs and mental health programs. The committee also released agency estimates for the costs of creating and overseeing the new marijuana market. In total, legalizing recreational marijuana would cost the state approximately $3.9 million annually. Here's how those numbers breakdown by agency.
The OLCC estimated that creating a new regulatory system for recreational marijuana would cost the agency $300,000 in fiscal year 2015, $2.5 million in fiscal year 2016 and $1 million in fiscal year 2017. The agency also estimated its annual operating expenses would increase by $3.2 million. Oregon's Department of Agriculture thinks it will need $100,000 annually so the agency can hire one person whose job would be to provide rule making and oversight around marijuana infused food products. The Oregon Health Authority estimated it would spend $200,000 annually to hire and keep two people who would license marijuana facilities and facilities that would test marijuana products. "This estimate assumes 20 such facilities," according to the committee's financial estimate. "New revenues are expected to be sufficient to offset these costs." Oregon State Police told the committee it would need to add three detectives and send certain deputies for additional training at a cost of $400,000 annually.
News Moderator - The General @ 420 MAGAZINE ®
Source: Statesmanjournal.com
Author: Anna Staver
Contact: Contact Us
Website: State estimates revenue, costs for legalizing marijuana
