Legal Marijuana Could Net Virginia $300 million in Yearly Tax Revenue
Richmond, Va. – Virginia could reap more than $300 million in tax revenue a year if lawmakers were to legalize recreational marijuana, according to the Commonwealth’s legislative watchdog.
In a new report, the Joint Legislative Audit and Review Commission says it would take about five years to reach $300 million in annual tax revenues, but along the way it would create more than 11,000 jobs and reduce arrests in the state by 84%.
This past summer, a law decriminalizing the possession of a small amount of marijuana took effect, but Gov. Ralph Northam and others said the law doesn’t go far enough and want to fully legalize the drug.
The commission was tasked with looking at the pros and cons of such a move and to explore how the state could create a regulated commercial market.
To research the issue, commission members conducted over 100 interviews, looked at the laws and regulations of states that have already legalized marijuana and read over 200 academic journal articles.
The commission said it would take more than two years to establish a functioning commercial market, and that it could cost as much as $20 million up front to do so.
According to the report, before moving forward, the General Assembly would have to authorize the development of a statewide market for commercial adult use marijuana sales.
Virginia would need to issue licenses for five types of major business operations that comprise the marijuana industry: cultivation, processing, distribution, retail sales, and testing.
The panel noted other states and countries have taken varying approaches to structuring their commercial markets, and that Virginia could use lessons learned from these experiences.
Virginia could allow ‘vertically integrated’ businesses, in which a single business can be licensed to cultivate, process, distribute, and sell marijuana at retail.
Or it could instead prohibit vertical integration by not allowing businesses with a retail license to obtain licenses for cultivation or processing.
Regardless of the market structure chosen, licensed testing labs would be needed to test products for purity and quality. These labs should be independent of any other marijuana operations.
The number of licenses issued would depend on demand for legal marijuana. Based on the commercial marijuana markets in other states, the commission said, Virginia could eventually issue between 100 and 800 cultivation licenses, 30 and 150 processing or distribution licenses, and 200 and 600 retail licenses.
Northam said Monday he plans to propose legislation on the matter when the Virginia General Assembly convenes in January. He told reporters he wants a “responsible approach” that promotes racial equity and preserves youth safety.
Northam acknowledged the process could take years, but he said that he’s confident the drug will eventually be legal for personal use.
In The News
Health
Voting
Marijuana
New Jersey legislators approved three bills Thursday that radically change how the state approaches drug use involving marijuana. The state’s Senate and Assembly voted first to create a new and legal marijuana industry from scratch and called for new regulations to be written within six months.... Read More
WASHINGTON - The House passed legislation that would decriminalize cannabis at the federal level -- the first time either chamber of Congress has voted on such a measure. And significantly, the measure received bipartisan support. When the figurative smoke cleared, the Marijuana Opportunity Reinvestment & Expungement... Read More
Richmond, Va. - Virginia could reap more than $300 million in tax revenue a year if lawmakers were to legalize recreational marijuana, according to the Commonwealth's legislative watchdog. In a new report, the Joint Legislative Audit and Review Commission says it would take about five years... Read More
As Americans head to the polls more divided than ever on social and economic issues, there's one thing they're actually coming together on: cannabis. Much has been made of whether a victory for Democratic nominee Joe Biden, or a potential liberal sweep in the Senate, could bolster marijuana... Read More
WASHINGTON — House Democrats’ plan to vote on legislation decriminalizing marijuana before the November election went up in smoke Thursday, as leadership decided to postpone consideration of the measure amid concerns about the political optics. Some of the more moderate Democrats in the caucus, including ones... Read More
When Tamarack Dispensary opened in the northwestern Montana city of Kalispell in 2009, medical marijuana was legal but still operating on the fringes of the conservative community. Times have changed. Owner Erin Bolster no longer receives surprised or puzzled looks when she tells people what she... Read More
