Massachusetts Could Make $81 Million a Year if Weed Was Legal – BostInno (blog)
The potential revenue spark would come via state sales and excise taxes collected off legal pot sales for recreational and medical use.
NerdWallet used data from the Substance Abuse and Mental Health Services Administration to estimate how much money each state in the country could make by following in the footsteps of Washington and Colorado, both of which voted to legalize weed in 2013.
Specifically, NerdWallet took the percentage of admitted pot smokers ages 25 and older in each state and multiplied that percentage by each state’s total population older than 25 to figure out how many people in each state like to burn one down from time to time. “We then took the state’s users as a percentage of total users over 25 in the U.S. and multiplied that by the total marijuana market estimate (sized at $14 billion by Harvard University economist Jeffrey Miron) to determine the market size in each state,” NerdWallet said in a blog post.
Legal weed in the Bay State, by the numbers:
Population age 25 and older: 4,556,609
Population 25 and up who admitted to smoking weed in the past month: 6.34%
Total number of pot smokers: 288,889 (Yes, Mass is a haven for pot smokers.)
State’s percentage of U.S. marijuana market: 2.74%
Weed market size: $383,689,301
Combined local and state sales tax rate: 6.25%
Excise tax rate: 15%
Revenue: $81,533,976 (This would between $11 and $21 million more than what Colorado is expected to make off taxing legal weed sales this year–$60 million to $70 million.)
NerdWallet’s study has California benefiting the most from legal dank, with taxes potentially generating nearly $520 million a …read more