How Much Can Legal Marijuana Tax Generate?

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As time passed, Colorado’s decision to legalize the use of recreational marijuana proved to be an economic success: they are “rolling” in legal marijuana tax. Racking in nearly $76 million dollars from pot taxes, this is almost double than the $42 mil collected from alcohol.

But the state might have to return some of that to taxpayers because of a legal hiccup. The Taxpayers’ Bill of Rights, (a 1992 voter-approved constitutional amendment) requires Colorado to refund some of those taxes to taxpayers if the state collects more than what’s permitted ( based on a formula that takes into account inflation and population growth). During its existence, Colorado found itself in the position to issue refunds six times, for a total of $3.3 billion.

In this context, lawmakers and voters must decide whether to keep tax revenue or refund it. It’s worth mentioning that if they decide to refund, the average taxpayer will get somewhere between $6 and $16 dollars.

Gregory Golyansky, the President of the Colorado Union of Taxpayers declared:”It should go to the taxpayers.When the government tries to keep the money that rightfully belongs to the taxpayers of Colorado, it is an enormous issue. There should be a tax refund.

On the other hand, Mary H. , a 29 year old economic adviser from Colorado said: “A few dollars per taxpayer aren’t going to change much; that money should go into the education system.”

In retrospect, it’s mind blowing to see the sheer amount of tax money the government was throwing away by allowing marijuana to take place in the underground market. Legalizing pot also gives the state a chance to regulate who and where can buy it, thus limiting irresponsible use of the proverbial weed. Granted, this poses some problems, such as driving under the influence, or educating the public not to abuse the substance, but the overall positives greatly outshine the negatives.

Should more states take example from Colorado ? Let us know what you think.[fusion_youtube id=”Kct5NgyJ7Ww” width=”800″ height=”480″ autoplay=”no” api_params=”” class=”” /]

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