Blogs » A Constitutionalist & Believer in Natural Law » State Revenue from Marijuana Tax

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Many individuals state, “As California goes, so does rest of the Country”; many others disagree.

Struggling with a $19 billion budget deficit, California is considering legalizing and taxing marijuana in a referendum on their November ballot. The new ballot initiative would allow anyone 21 or older individuals to possess, share or transport up to an ounce of cannabis for personal use and grow up to 25 square feet per residence or parcel, regardless of their medical condition and without a prescription. Cities and counties would have the authority to regulate and tax marijuana.

Even if the polls show 49% of the voters support the referendum, it will not be the answer to California’s budget deficit. The proposed $50 per ounce excise tax, along with the sales tax was projected by “California State Board of Equalization” will create about $1.4 billion dollars or about 7 percent of the deficit.

According to the “Center of Budget and Policy Priorities”, Texas will have reduced revenues of $4.6 Billion Dollars in 2011 compared to 2010 (12.8%). But Texas is not alone, they project that 46 states will have budget problems.

The question is will hard hit states go “as California goes” and legalize marijuana?