DePasquale: Legalizing Marijuana Could Generate $500M Per Year In Revenue
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HARRISBURG, Pa. (KDKA) -- It's a growing trend.
States across the country are reaping the financial benefits of legalizing the recreational use of marijuana.
Now some Pennsylvania elected officials are trying to cash in.
"This is an issue that is clearly moving in a direction where there is broad acceptance," state Auditor General Eugene DePasquale said in Pittsburgh on Thursday.
DePasquale and Pittsburgh Mayor Bill Peduto outlined the possible benefits legal cannabis could have on the Pennsylvania economy.
"My estimate in the special report today is that Pennsylvania could realize at least, and I'm going to say this, at least $581 million in tax revenue," said the Auditor General.
The 14-page special report, "Regulating and Taxing Marijuana," relies on national research data, claiming an average of 8.38 percent of the Pennsylvania adults (21 and older) currently use marijuana at least monthly, a total of 798,556 adults.
Citing figures from Colorado and Washington, the Auditor General says users spend an average of $2,080 annually.
If Pennsylvania's 798,556 adult users spent the same amount, they would create a $1.66 billion retail industry, says DePasquale.
Assuming a tax rate of 35 percent, the state would collect $581 million in tax revenue annually.
If Allegheny and Philadelphia counties were allowed to add 1-2 percent local tax, they could collect an additional $3.8 million and $6.9 million, respectively, says the Auditor General.
It's tax revenue that could be added toward several Pennsylvania initiatives, says DePasquale, including more dollars for the CHIP program, more funding for fighting the opioid epidemic, increased funding for veterans, and more dollars for pre-K education.
"This would help kids immediately in the city of Pittsburgh get that critical early education," DePasquale said.
Nearby areas like Ohio, New Jersey, and Washington, D.C., have already implemented legislation like this.
DePasquale even uses Canada as a point of reference.
"As you see, Canada is still a country. It [legal cannabis] didn't lead to some implosion of them," he said.
DePasquale hopes lawmakers will embrace recreational marijuana soon.
"The longer we wait, the more likely we are going to become a follower because, let me tell you, the train is pulling out of the station," DePasquale said.
