California Tax Officials Talking Marijuana Revenues

Seeking any means of revenue possible amidst a crippling, statewide revenue shortfall, a bill to regulate and tax the growth and sale of marijuana has been proposed in California. Tax officials in that state estimate that, as written, the bill would generate $1.4 billion in revenue for the state, including $990 million from a $50 per ounce state fee and $392 million in sales taxes. The bill was introduced initially be Tom Ammiano, a San Francisco assemblyman, who suggested that marijuana be legal for adults 21 years old and older to grow, sell and possess.

Ammiano noted that he suggested the bill to address California’s $26.3 billion budget deficit. Said Ammiano, "It defies reason to propose closing parks and eliminating vital services for the poor while this potential revenue is available." At present, the bill is written to include a stipulation that marijuana must first be legalized by the federal government in order for the state to collect taxes, but word is that Ammiano plans on amending the bill to remove that particular clause.

While there are no official numbers on the production and use of marijuana in California, analysts do tend to agree that California tops the country in pot production. Last year, 5.3 million plants were seized in California, while marijuana is actually grown legally in that state when intended for medicinal use. Said Stephen Gutwillig, the California state director of the Drug Policy Alliance, "We can’t borrow or slash our way out of this deficit. The legislature must consider innovative sources of new revenue, and marijuana should be at the top of that list." Now, if we can just get the Obama administration to start growing some pot to take care of that pesky national $1 trillion deficit (and growing...at light speed), everyone would be in good shape, indeed.