California to gather up to $1 billion worth of taxes from marijuana legalization

California is most likely to gather about $1 billion annually for taxes. This will take in effect once the voters legalize recreational marijuana. Such thing is expected to be fulfilled in the November 2016 elections.

Sun Times reported that the State and local governments shall save an estimated $100 million per year on marijuana-related criminal justice costs. The report added that the recreational marijuana taxes are expected to dwarf medical marijuana taxes. This is due to the reason that additional taxes will be directed onto Adult Use of Marijuana Act's proposed law.

Department of Finance director Michael Cohen and legislative analyst Mac Taylor mentioned in SF Gate, "In total, our best estimate is that the state and local governments could eventually collect net additional revenues that could range from the high hundreds of millions of dollars to over $1 billion annually." The report added that $1 billion in taxes would come from the Adult Use of Marijuana Act's, 15% excise tax on retail marijuana, in addition to $9.25 per ounce tax of the cultivation of flower buds, and $2.75 per ounce tax on less valuable, and the trim, loose leaf parts of the plant.

To take a look at the other tax expenses, related report noted that up to $50 million per year goes for mental health and substance abuse programs, $10 million per year goes for researchers to study legalization's impact, $3 million per year goes for California Highway Patrol to research stoned driver interdiction, and $2 million annually to research usefulness and side effects of medical cannabis.

On the other hand, California Department of Public Health mentioned that in 2015, the Legislature passed and the Governor signed into law three bills (Assembly Bills 243 and 266, and Senate Bill 643) that create a licensing and regulatory framework for medical marijuana. In which, its Medical Marijuana Program (MMP) was specifically established to create a State-authorized medical marijuana identification card (MMIC), along with a registry database for verification of qualified patients and their primary caregivers. 

At the moment, personal marijuana possession of up to 28.3 grams carries civil infarction with no jail time, but with $100 in fines. In addition, possession of more than 28.5 grams carries up to six months of imprisonment and $500 in fines.

Tags

California, Marijuana Legalization, taxes, State, Law, Adult Use of Marijuana Act, Legislature, Governor

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