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Friday
Jul 02nd

Marijuana starting to look like a new revenue source for states

BY DAVID HARRISON
STATELINE.ORG

Mary Lou Dickerson had seen enough. After wrenching cuts to Washington's state drug and alcohol treatment programs, Dickerson, a Democratic representative, introduced a bill this year to sell marijuana in state liquor stores — and tax it.

Dickerson is an unlikely crusader for marijuana legalization. A 63-year-old grandmother who doesn't use it, she says money was the only reason for proposing her controversial bill. "According to the state's own estimates, it would bring in an additional $300 million per biennium," she says. "I dedicated (in the bill) a great deal of the proceeds from the tax on marijuana to treatment."

The proposal died in committee, but Dickerson, who chairs the House Human Services Committee, expects to reintroduce it. Other advocates in almost two dozen states have been making similar efforts to loosen marijuana laws.

This has been a bumper year for marijuana legislation, according to state policy observers. Crushing state budget deficits gave advocates in California, Washington, New Hampshire, Rhode Island, New York and elsewhere an opening to pitch marijuana as a new source of tax revenue. At the same time, the Obama administration gave users and distributors some breathing room by signaling in October that it would scale back on prosecuting them as long as they comply with state law.

Eighteen states discussed medical marijuana through legislation or citizen initiatives this year, an unusually high number. Most visibly, California election officials announced on March 24, that this year's ballot would include a question to allow local governments to legalize and tax marijuana, casting a spotlight on the state that first legalized medical marijuana in 1996.

While most state legislative efforts are likely to fail, a victory in California could encourage other states to follow suit just as they did when California approved medical marijuana. A 2009 poll found 56 percent of California voters support outright legalization. Estimates from California's Board of Equalization peg the amount the state could raise from marijuana legalization at $1.4 billion.

But those projections rest on shaky assumptions that the state could keep track of growers and that distributors would accurately disclose their sales, if at all. And since marijuana is still illegal under federal law, it's unclear how the Obama administration would ultimately react to more permissive state marijuana laws. Officials have struggled for years with the legal questions posed by state and federal marijuana laws that appear to be in conflict.

"The more people talk about marijuana laws the more people come to the conclusion that they've completely failed, so we're definitely optimistic here," said Aaron Smith, California policy director for the Marijuana Policy Project.

Meanwhile, opponents of legalization in California are gearing up for their own campaign, knowing that the rest of the country will be watching. "We have a lot of pressure on us," says Aimee Hendle, statewide coordinator of Californians for Drug Free Youth. She sees marijuana advocates as opportunists exploiting the state's financial distress.

"They are seeing the vulnerability of the citizens of California with the state of our state," she says.

Arizona is also going this route for new tax revenue. Senators there have already approved levying the state sales tax on medical marijuana, even though voters won't weigh in on medical marijuana until this November's ballot. In Nevada, marijuana advocates are busy collecting signatures to place a legalization measure on the state's 2012 ballot. Rather than leaving the question of legalization up to local governments, as California's initiative does, Nevada's proposal would legalize and tax marijuana statewide. Nevada voters have already approved medical marijuana.

David Schwartz, campaign manager for Nevadans for Sensible Drug Laws, will be watching his counterparts in California. "If they win, it will be a stark event in the long battle to end marijuana prohibitions in this country," he says.

In South Dakota, Emmet Reistroffer is also among those following the news from California. Last year, he took time off from the University of South Dakota to gather signatures for a medical marijuana ballot initiative. It was a home-grown effort, drawing 40 volunteers, almost no national attention and no funding from major marijuana policy groups. Reistroffer, a Sioux Falls 20-year-old, took a part-time job at a local bar to make ends meet.

While he says he doesn't necessarily support outright legalization, he wants to make marijuana accessible for patients like his mother, who suffers from lupus and rheumatoid arthritis. She has used marijuana in the past, he says.

"While I was growing up I had friends in DARE (Drug Abuse Resistance Education)," he says. I've always looked at it very differently. I've always seen this injustice and felt obligated to do something about it."

Reistroffer plans to spend his summer trying to convince voters at county fairs. In 2006, voters turned down a medical marijuana measure on a close vote, the only state that has ever done so. If the measure passes this year, it will mark a significant shift in South Dakota's attitude towards the herb, he says.

But states shouldn't count on a revenue bonanza from marijuana since distributors still risk federal prosecution by emerging from the shadows, according to Robert Mikos, a Vanderbilt University law professor. Ideally, the thousands of small-scale marijuana farm operations would consolidate into larger groups that would be easy for states to tax, but the federal ban makes that unlikely, he says.

"If you get too big, you attract the attention of the federal government. If you're a mom-and-pop marijuana distributor in California right now, you have almost no concern about the federal ban," Mikos says.

Also, states would have to keep track of growers who have paid taxes. "That's a goldmine of information for the federal government," Mikos says. "If California requires marijuana distributors to keep records of all their sales the federal government could sweep in, take that information and use it to prosecute these people."

In October, the Justice Department released a memo indicating it would back off from prosecuting medical marijuana users who are complying with state law, but the memo did not say the department would tolerate outright legalization in states, opening up more legal ambiguities.

"The federal government will continue to try to combat recreational marijuana so California is kind of getting ahead of itself," Mikos says.

But Hendle and other opponents of legalization will also keep up their fight. "Even if you say it's only for people over the age of 21, that's what they say about alcohol and look at all the underage drinking that we have," she says. "We're now going to make this a larger problem."

STATELINE.ORG

 
Comments (18)
18 Wednesday, 21 April 2010 11:08
jonathan gotay
i live in brandon florida and im very interested in starting a legalization petition how would i go about starting that and wat does the petition consists of and just some starting tips please email me at jhngotay@yahoo.com thank you
17 Monday, 12 April 2010 16:35
Tank Johnson
Their solution: Tight for cash, governments raise traffic fees http://news.yahoo.com/s/ap/20100320/ap_on_re_us/us_traffic_fines_budget_cuts

Our solution: While a legalized marijuana crop wouldn’t solve all of California’s agricultural woes, it might still keep the state in the green. http://www.miller-mccune.com/business-economics/marijuana-dark-horse-savior-of-california-agriculture-11863/
16 Wednesday, 07 April 2010 00:58
DialOne
I am from California and I will vote no this Nov, to legalizing pot for the reasoning around taxing it, that tax money is going to go back to the man! Think out of the box for a second. If the kitty runs dry then the piggy’s don’t work instead they get furloughed.
By 2011 some politician will comment “Maybe these police furloughs could have been avoided if that tax marijuana law would have passed back in November 2010.
15 Tuesday, 06 April 2010 17:27
Politicalzoo
"Prohibition will work great injury to the cause of temperance. It is a species of intemperance within itself, for it goes beyond the bounds of reason in that it attempts to control a man's appetite by legislation, and makes a crime out of things that are not crimes. A Prohibition law strikes a blow at the very principles upon which our government was founded."

Abraham Lincoln (1809-65), U.S. President.
Speech, 18 Dec. 1840, to Illinois House of Representatives
14 Tuesday, 06 April 2010 15:56
Erin N
People that think marijuans is the problme are just ignorant and are unable or unwilling to face the truth. If you are a criminal it is because of you not because you smoke weed. If you start doing drugs like cocaine or meth its because you wanted to not because of weed. Stop blaming this country's lazynesson marijuana. My frind smoked for a long time and she is a very successful business woman. Most people I know that smoke are very succesful individuals with good jobs, nice homes and great lives. Yes leagalizing would be a great financial help for this country. And to the guy that said it would only "explode the trades in heroin, meth and crack", you are obviously uneducated. Anyone that thinks that all pot smokers are "unproductive losers" leads a sad closed minded life. Before you post a comment on something you really should make sure you know what you are talking about. This country has wasted millions of our tax dollars on a drug war and imprisoning people for the smallest marijusan infraction. We need to stop letting them waste our money on something that most of America does not support.
13 Tuesday, 06 April 2010 15:00
Waiting on the World to Change
This is the best documentary I've watched, education is key to this subject.

http://video.google.com/videoplay?docid=-9077214414651731007#
12 Tuesday, 06 April 2010 14:16
Samantha
Legalizing the plant will be a burden and a blessing. Yes, it would bring forth a new revolution of chainstores, but taxed properlly and controlled properlly it could help bring this country from the disaster we live in today, to offering a new enterprise of careers. The burden in this fight though, is the switch, from being illegal to legal. I think that is what everyone is affraid of. Everyone is affraid that if marijuana becomes decriminalized at the federal level the state will not know what to do with it, hmm, here is a thought, lets take the taxes and fix our roads, or offer them as grants to students continuing education after high school. Give students an incentive to work towards, there is too many people in this country who cannot afford even to pay for the test to take to get into college. Let's think of something.
11 Tuesday, 06 April 2010 14:02
Worried
Marijuana has been used for medicinal and spiritual purposes for thousands of years. The "War on Drugs" pursuit of this herb is ridiculous and costly. Just stopping the pursuit and persecution of users and home growers would save the government millions.

Think if this was a crop like corn or soy beans or basil the sale of it could be taxed and/or regulated by sale from government sources. It would add to the economy rather than being a cost in the budget.

I have not used marijuana much in my life but I now have fibromyalgia and am going to need it to have a good quality of life. I don't want more chemicals (and there are none for my disease) and the idea of being able to grow my own so I know what is in the end products is really important. My state has medical marijuana laws but still I am fearful of the feds taking all I have worked for if I grow my own. Doesn't seem to sensible to me and being retired, if that happened, I would not have a chance to work and recover.
10 Tuesday, 06 April 2010 13:53
Common Sense
It's this kind of mentality that this should be given to anyone over 21. I am sorry to burst your bubble when I say this; everyone that has a medical use for medical cannabis should be allowed to utilize it for it's benefits. Agricultural grants should be put into place for people with the land to produce the Hemp side of the plant for all of it's benefits. In life we have a chance to stand in front of the world and become a model and leader in the industrialization and production of hemp and medical cannabis. The crimes involved with Mexico should be maybe handled by taking some of the task forces we have now in the cities and ramping up security for our country to stop the illegals from importing into the US. If they are caught we should test and keep the illegal importing of cannabis in a testing facility and if found to be clean of toxic agents harmful to PATIENTS of Humans, should then be distributed to low income clinics or dispensaries that have low income clients.
9 Tuesday, 06 April 2010 12:42
Robert Nelson
marijuana will become this country's source of revenue and pick us up out of debt from WW2. seriously this country is so fucked up and stupid that we cant pay back debt from over 70 years ago...pathetic! legalize weed and watch money pour in and our prisons will empty. the people who kill other people can go in and people who smoke some bud out of the correction facilities because we are correct and you (government) are corrupt.
8 Tuesday, 06 April 2010 12:37
Amber
I believe that the first step to getting the government to decriminalize marijuana is to get all the states behind the notion. Just like states are doing now with legalizing medical marijuana. It does help a lot of chronic diseases. It helps me with my disease.
If you want to control drugs in general, they need to have laws and regulations. A study showed that it is easier to get a joint than it is to get beer for a teenager. This is possible because of the restrictions on buying alcohol.
As to comment on another comment, legalizing marijuana would not make the nation a bunch of losers who don't do anything. Many people smoke, and what they do may surprise you. I, for example, work and am a full-time student who is getting straight A's. I also smoke everyday at night to calm my pains. I am not a loser.
7 Tuesday, 06 April 2010 12:28
Healthy American Politician
There should be more states with this issue on the ballot and not just for medical use, there are too many benefits of hemp to go unnoticed. Politicians need to stop taking money from lobbyist who are poisoning our waters with chemicals. Watch one of the twenty documentaries available about the benefits of hemp!
6 Tuesday, 06 April 2010 11:25
Bootleggin
let`s not forget all the problems prohibition brought during the depression.I could be wrong but did`nt legalizing alcohol help bring this country out of the depression.The same could apply to marijuana.It`s funny how history has a way of repeating itself.Other countries that have it legal found that most people there found drugs to become boring.why grow it in your backyard when you can go to the store.People down grow tobacco.Us americans are too lazy.Legalizing will only hurt the ones growing illegal now.They make thousands of dollars a month from selling to the streets they don`t care how old you are(the customers).the ones selling on the streets now if becomes legal would be forced to find a real job.
5 Tuesday, 06 April 2010 11:19
Mao
This is ridiculous. Everyone who knows pot smokers and drug users or is one already knows that legalization of marijuana will explode the trades in heroin, meth and crack. Do not think for one minute that the same mentality that makes people need to smoke pot to get buy is not present for ALL other drugs. We will become a Nation of unproductive losers and foreign countries will clean our clocks and get the jobs. This is a sign of decline not progress. Just wait until it is "hip" to smoke methamphetamine at parties because pot is no longer cool and you lose every dime you've ever earned in your investments because your hedgefund manager (who is hooked on high grade pot) got introduced to meth. Oh look, I didn't sleep this week cause I was working hard on your money! I bet the Chinese are laughing at how stupid we have become.
4 Tuesday, 06 April 2010 09:25
Concerned Republican Parent
As the party of individual liberty and responsibility, I hope we as Republicans will put an end to this wasteful, police-state approach to marijuana. It's time to let ordinary Americans grow a little marijuana in their own back yards.
During the upcoming November ballot initiative in California, hopefully Californians will be prepared for the "October Surprise" that the prohibitionists will pull out of the hat as November approaches. The prohibitionists will no doubt try some late-breaking scare tactics and continue to ignore the harm caused by putting our young people in prison, the loss of tax revenue, the waste of tax money, the huge cost of enforcement, and all of the other evils of prohibition.
Parents, let’s watch out for the "October Surprise" and let’s stop putting our own kids in jail!
Citzens of California can register to vote at w w w . sos.ca.gov/elections/elections_vr.htm by completing the online form and mailing it to the address on the form.
3 Tuesday, 06 April 2010 01:39
Collin Erickson
As a currently enrolled high school student I have seen first hand how easy it is to get some grass, especially at this age. And it doesn't matter how heavy the laws for prohibition are, kids will still find a way to get what they want. This can easily be compared to the prohibition of alcohol in the 1920s. Prohibition only leads to increased popularity and illegal involvement; for instance, the black market. The same is with marijuana, prohibition only increases involvement amongst the youth of the nation because the idea of getting away with something you shouldn't is one of the main reasons it is such a common phenomena.

On a sidenote: alcohol is incredibly dangerous as opposed to weed for the obvious reason that you can drink yourself to death, but it is literally impossible to smoke yourself to death with cannabis. You can with tobacco over long term use, but cannabis is actually being used to treat lung cancer as one of many ailments being treated with the use of cannabis in the state of Colorado, and other states with cannabis currently legalized for medicinal purposes.
2 Monday, 05 April 2010 23:44
Joey-bag-o-doughnuts
When I was in high school (a decade ago) it was much easier to get marijuana than alcohol. How many 14-18 year old kids knew someone age 21 who could buy alcohol? Not many, those kids were college upperclassmen. The government does a better job of keeping substances away from kids by regulating drugs than drug dealers do.
Fact: if I wanted pot in 1st hour, I could have it by the end of lunch period in high school. And I was in a good group of kids.
1 Monday, 05 April 2010 23:12
Charles Crane
"Even if you say it's only for people over the age of 21, that's what they say
about alcohol and look at all the underage drinking that we have," she says.
"We're now going to make this a larger problem."

Kids can already get weed, if they want it, and there are more dangerous prescription drugs in their parent's and grandparent's drug cabinet. Her argument is very weak.

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