With every election, new states legalize some form of cannabis. That’s proving to be good for their bottom lines.
During the recent midterm elections, much of the country was focused on the growing divide between red and blue. But smart investors were focused on a different color — green, as in the color of cannabis. Michigan became the 10th state to legalize recreational use, while Utah and Missouri became the 32nd and 33rd states to legalize medical cannabis. The rising green tide promises new streams of tax revenue and job growth.
The states that have legalized are rightly optimistic about the potential for cannabis taxes to start helping pay for their roads, schools and local governments. Take Michigan, where recreational cannabis will be taxed at 10%. The state has estimated it will generate $737.9 million in additional tax revenue in the first four years after legalization. That’s enough to meet the budget for the state’s police force for an entire year, or plug its shortfall in funding for special education.
Some states are already reaping the benefits of legalization. Nevada is pouring $42.5 million in taxes (far exceeding original predictions) from the latest fiscal year into its Rainy Day Fund, which had been close to running dry. Colorado and Washington, which were the first