State Tax Notes correspondent Lenny Goldberg reports that a measure that will legalize marijuana in California and permit the state and localities to tax it has received enough signatures to make it likely to qualify for the November, 2010 ballot. The measure would eliminate criminal penalties for personal use, and permit cities and counties to regulate use and sale of marijuana. It also would permit the state and localities to tax marijuana.
According to the ballot summary, the measure will bring “unknown but potentially major tax, fee and benefit assessment revenues to state and local government relating to the production and sale of marijuana products.” Recent estimates by the Board of Equalization approximated $1.4 billion in potential revenue. The summary also notes savings of tens of millions of dollars relative to costs of incarceration and enforcement. The signature drive was funded by marijuana entrepreneur Richard Lee.
The website in support of the initiative is available here: http://www.taxcannabis.org/. To view the initiative click here.
BallotPedia issued the following report:
A California Marijuana Legalization Initiative (09-0024), an initiated state statute, is likely to be on the November 2, 2010 ballot in California. Supporters turned in over 700,000 qualifying signatures to election authorities on January 28, 2010, versus a requirement of 433,971 signatures.[1]
Richard Lee, who organized and helped fund the effort to put the question on the ballot, describes the goal of the initiative as “…a reverse tax revolt – no taxation without legalization.”[2]
Supporters of legalization are focusing on the benefits they say would flow to the state from taxing marijuana; when marijuana is illegal, it is not taxed. If it was legal, the government would be able to collect the state’s sales tax on it. This would add money to California’s coffers during a time that the budget is out-of-balance.[3]
The domestically grown marijuana crop in California is worth an estimated $14 billion a year, making it an attractive target for taxation in a state with an unstable economy and budget deficit in the tens of billions.[4] According to the state’s Board of Equalization study, the state might generate $1.3 billion in taxes if marijuana is legal and taxed.[5]
In 2008, the state of California made about 78,500 arrests on felony and misdemeanor charges related to marijuana.[6]
Three different groups submitted language to the California Attorney General for ballot titles for marijuana legalization ballot initiatives, but Richard Lee’s initiative is almost certainly the only measure that will qualify for the ballot.[7] Meanwhile, state legislator Tom Ammiano has introduced legislation in the 2010 session of the California State Legislature that would legalize, tax and regulate marijuana in California in much the way that the state controls and taxes alcohol.[8]
Tax Cannabis 2010 is the official advocacy group for the 09-0024 marijuana legalization initiative. Richard Lee, the executive director of Oaksterdam University helped start Tax Cannabis 2010. Oaksterdam University is “a major medical marijuana dispensary and advocacy group” based in Oakland.[3][10]
“Control Marijuana”, sponsored by the Marijuana Policy Project, also supports legalizing and taxing marijuana.[11]
State Assemblyman Tom Ammiano introduced a bill in the 2009 session of the California State Assembly to legalize, tax and regulate marijuana.
Retired Orange County Judge Jim Gray, a Libertarian, supports legalizing marijuana.[12]