- In this story (below), the Board of Equalization grossly underestimates the size of California’s medical marijuana market at $200 million. The true figure is much closer to $1 billion. The BOE’s estimate is based on their sales tax receipts from known MMJ dispensaries, which come to $18 million. However, the BOE figure fails to account for the proceeds of the majority of dispensaries that don’t identify themselves as such on their tax returns. Note that the average pot smoker spends around $3K per year for medicine; there are over 350,000 medical marijuana users in California; that makes for revenues of $1 billion or more.
– D. Gieringer, Cal NORMLMarijuana co-ops evolve as they mature
Redding Record Searchlight
February 13, 2010
- California NORML analysis estimates legalization could yield taxpayers $1.2 billion per year. (Updated 1/09)
- DEA Robs California of Millions in Tax Revenues; Seizes Tax Payments from State Board of Equalization (12/13/2007)
- Report: California’s Billion-Dollar Medical Marijuana Market Offers Millions in Tax Revenues, But Federal Policy Impedes Collection(1/3/2007)
- Economic Benefits of Marijuana Legalization