Legalizing Pot Could Be Windfall For Wisconsin
Legalization could generate $138 million per year in tax revenue beginning in 2021.
That may be low, though — the department estimates that Wisconsinites would buy just 55% of the volume purchased in Colorado.
The department estimated the impact of legalizing marijuana as proposed in a bill introduced by State Rep Melissa Sargent (D-Madison) and State Sen. LaTonya Johnson (D-Milwaukee). The bill would legalize the sale and use of pot for recreational and medical purposes.
“Even by conservative estimates, my bill to legalize marijuana will be an economic boon for Wisconsin,” Sargent said Tuesday. “It’s not just about legalizing marijuana; it’s about legalizing opportunity. This bill will create new jobs, support local economies, and present a return on investment per dollar that’s unparalleled in other industries. The numbers support legalization and given the budget crisis we’re facing, it’s time for us to give legalizing marijuana serious consideration.”
The department assumed that Wisconsin marijuana consumption patterns would be similar to those in Colorado, where excise tax collections rose from $41.7 million in 2014 to $89 million in 2015, and $143.2 million in 2016.
Overall, though, Wisconsin pot users would buy just 55% of the amount of marijuana sold in Colorado, the department said. DOR didn’t explain its reasoning, saying only that the estimate is “based on information from the U.S. Substance Abuse and Mental Health Services Administration and the U.S. Census Bureau regarding marijuana usage rates and population differences.”
Wisconsin’s estimated population is actually a tad larger than Colorado’s – 5.8 million here compared to 5.5 million in Colorado, according to the U.S. Census Bureau.
New legalization costs in Wisconsin would be fairly minimal in comparison to revenue, according to the estimate – a one-time expenditure of $345,980 for setting up processes and systems for the new tax, another $156,360 annually in related administrative costs, and $1.2 million for 10 new excise tax agents, a supervisor and one criminal investigator.
Gretchen Schuldt writes a blog for Wisconsin Justice Initiative, whose mission is “To improve the quality of justice in Wisconsin by educating the public about legal issues and encouraging civic engagement in and debate about the judicial system and its operation.
More about the Legalizing of Marijuana
- Matt Flynn Comes Out in Favor of Legalizing Marijuana - Matt Flynn - Nov 14th, 2017
- Dem Lawmakers Push To Legalize Medical Marijuana - Dave Fidlin - Nov 2nd, 2017
- Legalizing Pot Could Be Windfall For Wisconsin - Gretchen Schuldt - Sep 29th, 2017
- Op Ed: Reduce Penalties for Pot Possession - Gretchen Schuldt - Aug 7th, 2017
- Op Ed: We Must Legalize Marijuana - State Rep. David Crowley - Jul 21st, 2017
- Gov. Scott Walker Defense of Taking Donation From Marijuana Industry Advocates While Calling For More Drug Testing: $25,000 Check Too Small to Influence Him - One Wisconsin Now - Jul 21st, 2017