Board of Equalization, Cal NORML Agree On Benefits of Ammiano Bill AB 390
July 15 – Assemblyman Tom Ammiano’s marijuana legalization bill would net California $1.38 billion in tax revenues per year, according to a newly released analysis by the State Board of Equalization. The BOE’s estimate parallels a similar analysis by California NORML, which estimated tax revenues at $1.01-$1.26 billion: Not included are savings in law enforcement costs for investigating, arresting, prosecuting, and imprisoning marijuana offenders, which are estimated to total some hundreds of millions per year.
“With the state in dire financial straits, it makes no sense for taxpayers to be paying to arrest, prosecute and imprison marijuana offenders, when they could be reaping revenues from a legally regulated market,” says Dale Gieringer, author of the Cal NORML analysis.
The BOE estimates that the Ammiano bill would net $990 million in excise tax revenues, plus another $392 million in sales taxes, based on a total annual state consumption of about 1 million pounds per year.
The Ammiano bill, AB 390, is expected to be heard by the Assembly next January.