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January 25, 2019 administrator

The end-of-year Farm Bill passed in December of 2018 brought with it the re-legalization of a crop that has not been on the U.S. Government’s approved list since 1937. Hemp, the non-intoxicating cousin of the oft-maligned marijuana, has returned to the country’s list of approved substances. The lumping of hemp with marijuana was not an uninformed accident; it was a calculated smear campaign by a number of industries struggling to compete with the hemp market. As we return to using hemp close to a century later, there are potentials for profit estimated to be in the tens of billions by 2025. The first clues on where these profits will lie can be found at this story’s beginning.

Hemp versus Marijuana: What is the Difference?

A bit of an explanation must preface the tale, as the difference between these plants is a major part of the story. Both hemp and marijuana are in the Cannabis family. For those who like Latin names, hemp is Cannabis sativa, while marijuana is Cannabis indica. These species are still considered larger classification groups and are often broken down into further subspecies; anyone who goes to a marijuana dispensary or recreational shop like Euflora will get a variety of subspecies options.

For non-scientists, these are different species that are closely related (close enough to be cross-bred. They look similar, and it has not been uncommon to refer to hear someone refer to marijuana as hemp. Hemp and marijuana have some growth differences, as one is valued for its leaves and the other the fibers in its woody stalks. The key difference to note here is the lack of THC in hemp. Though not an intoxicant, it does contain other compounds in common with its sister species, like CBD.

The 1937 Marihuana Tax Act and Why it Matters Now

Both hemp and marijuana were originally banned during the 1937 Marihuana Tax Act. This bill was prepared in secret and passed through a series of misinformation campaigns. This bill has been considered to be racist, scientifically baseless, and a power grab to knock hemp competition from several markets. The key players in the tale give us some clues as to the real motivations behind the story.

Prior to the illegal status on the crop, hemp was one of the most important cash crops for U.S. farmers. Today, it is estimated to have over 50,000 uses. Even at the turn of last century, hemp was an incredibly powerful product. The fibers in hemp are stronger than any plant-based material and were stronger than anything else known at the time. It made superior paper that didn’t yellow, rope, and better fabric than cotton (with less labor and maintenance required). The oil in hemp was edible, burnable, and medicinal. It was a staple in diets, pharmacies, and early attempts at combustion engines. The original diesel engine made by Rudolf Diesel burned hemp oil.

The beginning of industrialization also saw the beginning of big business and the attempt to control competition and supply chains to maximize profit streams. In the late years of the Great Depression, these companies needed a competitive advantage to stay solvent. Removing hemp from the marketplace became that win.

There were several key players in this act, all of whom saw to profit from the banning of hemp from the marketplace. A group of business interests that were led by DuPont petrochemical company teamed up with Andrew Mellon, the Secretary of the Treasury under Harding and a major interest in Gulf Oil. The final player was Randolph Hearst, who owned a newspaper empire and a timber company that competed against hemp for paper production.

Though Hearst’s papers, a smear campaign was created. What was then called yellow journalism (named, ironically, for the yellow wood-based paper that was considered substandard to hemp paper) and is now called fake news was sent out to demonize the party drug, marihuana. The name was simply the Spanish word for hemp, and was intentionally used to make it seem foreign and scary as well as to prevent people from understanding the staple crop they would be opposing. No distinction was made between the two products. The ban was successful until its repeal at the end of 2018.

The Return of Hemp: Where are the Profits?

Whether you are a homesteader or an investor, there are savings and investment opportunities available in the hemp market. Here are some of the places where hemp will have a strong showing in the marketplace:

Petrochemical Products

DuPont had good reason to want hemp out of production. At the time of the ban, they were just about to take their patent for Nylon public. Fabric made from hemp was a stronger fiber that was cheaper to produce. It was also biodegradable. They also made a number of chemical additives for petroleum gasoline, which was competing with biomass and plant-oil fuels in the newly created automobile industry.

Hemp will likely have a strong future in biofuel technologies. Compostable bioplastics will also be likely to incorporate hemp. Of course, hemp fabric is another thing that has already returned to specialty markets and is likely to become a more mainstream option in the coming years.

Paper

The paper industry is hurting some thanks to the advent of electronic reading, but a specialty market still exists. However, the surge of online purchases has also made the paper market for packaging materials (think Amazon boxes) make up for some of the profit loss. In addition to creating stronger paper that requires fewer processing chemicals, hemp can be grown on the same plot of land year after year. This requires a smaller land use footprint than that of timber pulp. This is a plus for eco-conscious buyers and wild land advocates alike.

Pharmaceuticals

The use of medical marijuana has been well-documented. Retail stores like Euflora will offer a number of different product options made from marijuana to deal with pain, anxiety, nausea and other ailments. Unfortunately, because marijuana is classified as a Schedule 1 drug federally, these products have so far only been available to those who lived in states with recreational or medical marijuana laws in place. Even then, the cost of these medications are not legally allowed to be covered by insurance, even when they are more effective, less harmful and less expensive overall than other prescription options on the market.

The legalization of hemp, in this industry, will open the door to the use of non-THC compounds shared in both plants. CBD oil, a compound called cannabidiol that has had a lot of press in the years leading up to the return of hemp, is one product found in both plants that will likely see a surge in use. The removal of CBD from the Schedule 1 drug list will also make it possible for distribution across state lines and use in non-dispensary locations like coffee shops, restaurants and health food stores.

The final, and perhaps largest, benefit for the legalization to the pharmaceutical industries is that it opens up the full gamut of funding opportunities for research. Until now, the gray area of being legal in a state but illegal federally has closed the door on grant funding and many business loan opportunities. Businesses looking to create innovative products have had to rely on private, and often expensive, loan sources. Access to the free market of money lending and the lower, more competitive rates that come with it can only help to drive innovation here.

Textiles and Fiberboards

Two of the largest growth opportunities for hemp that are already in process include the textile and fiberboard markets. Auto industries are looking for an alternative to fiberglass, and prototype hemp panels have been found to be strong, durable, and easy to manufacture. Hemp-based fabrics have been shown to be UV-resistant (unlike cotton) and hypoallergenic. As consumers learn more about the unintended consequences of microplastics from plastic clothing breakdowns and the effect of sunscreen chemicals on critical habitats like coral, these fabrics will have even more appeal.

Personal Care Products

Hemp oils have been a staple of natural beauty products for some time. Prior to legalization, it was possible to import sterilized seeds, oils, and processed hemp products in the U.S. as manufacturing products but not to grow them domestically or process anything on U.S. soil using stems, leaves, or non-sterilized seeds. The repeal of the rule means that the import cost of hemp oils has disappeared, and the market for small cottage industries will grow. Expect a large farm-to-beauty upswing in farmer’s markets and buy-local venues nationwide when it comes to hemp-based beauty markets.

Agriculture

With tariffs on corn and soybeans hurting the U.S. Agricultural market, the boon to farmers was one of the main reasons that hemp legalization was given bipartisan support in congress, even from those who still oppose legal marijuana use. As a plant that doesn’t have tariffs and that requires fewer resources to grow compared to other products, there is a lot of upside for the farmer.

Hemp has a high product-to-acreage ratio, which means that you get a large crop compared to the amount of land that you farm. Cotton requires about twice the land, for example, as hemp to produce the same amount of textile product. Cotton takes twice the water to grow compared to hemp, which needs 20-30 inches of rain during the growing season to forego irrigation completely. When you factor in the water requirements of processing, hemp’s advantage over cotton only increases. You can go from seed to shirt with a mere quarter of the water consumption. Similar studies are sure to come soon when comparing it to corn and soybean products.

Homesteading and Hemp: Saving through DIY

A lot was said about the investor marketplace and production side of hemp as the bill gained popularity. There is, however, another money-saving reason that this plant will be a cost-saver. For the DIY and homesteader sets, hemp is a triple threat. It is easy to grow, it has multiple uses, and many of the products are simple to manufacture yourself. This is one of the major reasons why it was a staple crop on farms nationwide prior to the ban.

Fibers

Fibers from the woody hemp stems can be dried and pounded. Wool and hemp clothing were more common than cotton in pre-manufacturing days because neither required a factory to produce with some efficiency. A return to hemp fiber processing will likely bring with it some innovative new products for home fiber extraction and weaving and a slew of DIY tutorials.

Food

In addition to the manufacturing and medicinal advantages of hemp seed and hemp seed oil, both are edible sources of Omega-3. This allows for a nutrient-rich diet source that is easy to grow and use. While the levels of beneficial alkaloids like CBD are not distilled and purified, there is an underlying level of the chemical in any hemp food product. Hemp milk, a favorite newcomer to the latte shops, is also easy to make at home with some cheesecloth and a YouTube video.

Energy

For those who want to live electrically off the grid, hemp oil continues to be a good way to generate your own electricity. Diesel generators can be fitted to run off hemp oils grown in your own backyard. They can also be burned as candles or in oil lamps for light. This not only offers a home-grown fuel source, it means cleaner air with fewer combustion byproducts.

Just the Beginning

Now that hemp has the green light for product development, manufacturing and distribution, there is little doubt that markets for hemp products will explode. In addition to the places where hemp once dominated the market and likely will again, there are a lot of promising new technologies that may not have been considered. Best of all, this is a product that has benefits for both big business and small cottage industries. There is no better time for the tragic tale of the hemp ban to get its happy ending.


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January 4, 2019 administrator

In 2016 the cannabis market in the United States was estimated to be worth over 7.6 billion dollars. Based on current trends from the US Bureau of Labor, this industry is expected to add over 300,000 jobs to the United States by the year 2025. This is especially important in this day and age–where automation is replacing workers at an alarming rate.

The legalization of cannabis is expected to create a wide variety of new economic opportunities. This industry is one of the fastest growing in the United States and it is predicted to employ more people in 2020 than the entire manufacturing industry. Some of the jobs will be for positions that are directly related to the industry–such as growers, harvesters, technicians, quality control managers, and chemists but there will also be job growth in related industries that are impacted by the industry. This includes jobs such as truck drivers, cashiers, marketers, accountants, human resource professionals, accountants, general managers, and web developers.

Due to this increased demand, there has been a recent surge in training programs that are tailed to finding a job in the cannabis industry. Many states now offer a marijuana worker license for professionals who want to work in the industry. Because of the wide variety of jobs that are related to this industry, it will be easier for someone to find a position that is well suited to his or her unique skill set. This can help to benefit new job seekers who are looking to get established in a growing field.

Besides the creation of new jobs, the legalization of cannabis for recreational usage in more states is also expected to impact the economy in several other ways. With less resistance against legalization, there is expected to a bigger push to have cannabis legalized nationwide. This is expected to create a significant increase in investment opportunities as more companies are allowed to be registered on the public stock exchange. Investment in weed stocks is predicted to grow faster than average due to how new this sector is compared to other sectors in the market. When they first became public, many Canadian weed stocks had a trading volume that was higher than average when compared to other industries during their opening week. It is likely that there would be high interest in US cannabis companies if they were ever able to follow suit.

Along with creating more investment opportunities–another significant contribution to the economy from the cannabis industry would come through the tax revenue that is generated from sales. One reason why this would be such a big deal is because people would now be able to buy cannabis from a legal source instead of purchasing it off the black market. California alone collected over 3 billion dollars from sales taxes during 2017. If marijuana was legalized nationwide the taxes from sales are estimated to amount to over 138 billion dollars.

A lot of money would also be saved from the costs that are associated with the criminalization of using cannabis. Several billion dollars could be saved every year from the costs and fees of imprisoning people who are issued drug charges for using cannabis. Several countries, such as Canada, have changed the law to make illegal possession or usage of marijuana to be a civil crime rather than a criminal charge. This helps to generate money in fees and it eases the burden on the criminal justice system because it decreases the amount of people who are jailed for minor offenses. This also helps many people to avoid having a charge on their criminal record–which can make it more difficult for people to find jobs years after they are charged with the offense.

There have been statements from many police officers who support the legalization of marijuana because they feel like there is too much time and effort that is wasted on nonviolent crimes. Some officers have said that this wastes taxpayer money and that it can hinder them by preventing them from focusing on more serious crimes.

As of late, cannabis has been legalized in over 25 states. This includes the use of medical marijuana in 33 states and the recreational usage in 10 states. It is expected to become legalized in more states as the push to decriminalize weed has grown among the younger generation. At least 7 more states are projected to legalize at least partial use of the drug and more are expected to allow more casual usage of the drug.

Legalization of cannabis has become a more popular topic recently after Canada became the second G2 nation after Denmark to legalize marijuana. But despite how well-known Denmark is as a tourist spot for cannabis users, the first nation to legalize the use of cannabis was actually Uruguay.

Under the initial law that was passed in Uruguay, pharmacies were allow to sell marijuana to citizens who were of legal age for purchase. Citizens were also allow to register to a cannabis club and were allowed under certain restrictions to grow their own marijuana. There have been issues with demand for the drug outpacing the supply. This has pushed the prices of cannabis in Uruguay up to about $2.50 per gram. Part of the problem is that the distribution methods were limited to pharmacies rather allowing cannabis to be sold in more general stores.

In Canada the sale of cannabis is limited to specific stores and the legal age to buy the drug is dependent on the territory where it is bought. Lawmakers hope that legalization will help to curb the use of the drug among minors by making it more normalized and less like a forbidden fruit. Another major reason for the legalization of cannabis for casual use is that it will make help regulate the production of the drug in order to make sure that the quality of the drug is up to standards. This would help reduce the risk that comes with buying the drug off the streets because it would now come from a known source.

In 2014, Colorado became the first state in the US where cannabis was legalized for recreational use. Purchase of marijuana within the state is restricted to adults who are 21 or over and is limited to 28 grams within a single transaction. The store hours for which cannabis is allowed to be sold are dependent upon which county the store operates in. Any store that is planning on selling marijuana must be licensed to do so. There are currently many restrictions on how cannabis can be advertised. In most states ads for cannabis are limited to specific forms of media and are not allowed to be shown on public television or radio stations. This is done in order to prevent companies from trying to target minors.

Along with the sale of marijuana, there are laws that restrict the concentration of THC that can be found in your blood when driving. Because of this, it is best to be remain aware of when you lasted smoked or injected a substance whenever you plan on operating a vehicle. It is illegal to transport cannabis across state borders in the United States so be aware of each states laws on weed. In Colorado, minors who are caught in possession of cannibals are given a civil charge instead of a criminal charge.

But Colorado is not the only state that is known for this industry. Recreational usage of weed is currently legal in 9 other states. These include Washington, Oregon, Nevada, California, Massachusetts, Maine, Vermont, Michigan, and Alaska. One big push for the legalization of cannabis occurred in December of 2018, when the bipartisan farm bill was passed. This allowed for the production and usage of marijuana that did not contain THC.

Along with creating more economic opportunities–the legalization of marijuana has created the demand for entertainment facilities that are catered to cannabis usage such as coffee bars, lounges, and nightclubs. This has helped to create new local businesses, each with their own rules for what is permitted. Some of them only allow smoking indoors while others have an outdoor space that is set aside for cannabis users. These hangout spots have helped to provide jobs and many of them cater to tourists that come to the city. A relatively high amount of cannabis purchases in cities like Denver still come from people who are from out of state.

There has recently been more debate about whether or not cannabis delivery services should be permitted in cities where the recreational usage of marijuana is legal. The largest barriers to this are uncertainties over how delivery companies would be regulated and concerns over the verification process of sales that are made from door to door. Proponents think that this would make it easier for people who have a difficult time leaving the house to have easier access to cannabis products. This could help people who rely on marijuana for pain relief such as older consumers or people who have a chronic illness that restricts their mobility. It would also help to create new jobs for delivery drivers. Jobs like this would be great for people who need flexible part-time work.


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March 2, 2018 administrator

It’s recommended that you should let at least four hours pass between the time you smoke marijuana and the time you drive a car. The window for taking marijuana orally is six hours. However, these guidelines come with a few caveats.

The Trouble With Guidelines
However, it’s difficult to set hard parameters for safe time passed between smoking marijuana and getting behind the wheel because the effects of marijuana vary widely according to potency and tolerance. They are, in short, dose-dependent. So while it is helpful to suggest a window of hours between smoking and driving, it’s even more useful to get into the details.

Don’t Be High
No one should drive while high. If you’re “a little high,” as measured by how strong your buzz is, you shouldn’t get behind the wheel. Many of us think we can drive with a slight high. The first parameter for safe time passed between smoking marijuana and driving is that you shouldn’t be high at all.

Don’t Be Overconfident
Smokers who drive can underestimate the time they need by forgetting these factors:

There is a period during which you might not be feeling the “high” — you’re no longer recreating with marijuana — but your senses and reflexes aren’t yet what you’d like them to be for getting behind the wheel.

There are levels of being “straight” after smoking that are appropriate to normal driving conditions but not for emergencies. Skidding on black ice or having to swerve away from a pedestrian stepping into the street from between two parked cars, for example. It’s usually recommended that eight hours should pass between the feeling of euphoria has passed and the moment you drive.

Notice that there’s a certain inconsistency between that recommendation and the one listed further above (that you shouldn’t drive for four hours after smoking).

When recommendations clash, it’s better to go with the more conservative option and decide that you shouldn’t drive for eight hours after smoking marijuana.
A smoker might handle his or her vehicle faultlessly but still be in legal trouble if something goes wrong completely beyond your control.

 

Marijuana, Driving, and the Law
Don’t make the mistake of thinking that because marijuana might now be legal in your state it’s legal to drive while high. Even if there hasn’t been an accident, if you’re pulled over while driving high you’ll be cited for Driving Under the Influence, just as though you had had a martini.

 

Laws vary from state to state. Some have a zero-tolerance policy, together with broad interpretive powers granted to the police officer who has pulled you over. Don’t be surprised if the mere presence of weed paraphernalia in your vehicle is enough for a judge to decide in favor of the officer even though you hadn’t smoked in several days.

Conclusion
Marijuana is criticized for leading to a sedentary lifestyle. When it comes to driving, let this criticism become sound advice. The safest place to be high is on your couch.


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November 30, 2017 administrator
If you’ve been following the developments unfolding over the past month regarding Euflora’s efforts to obtain the permit to manage Denver’s annual 420 Festival, here’s an update.
The city of Denver essentially setup a race to the permit office at 8am on November 21. At the outset it sounded like an unorthodox but technically “fair” way to release the permit. The only problem was that the City had not informed their security team of the details and this lead to several massive failures on their end. Check out this Surveillance footage that shows how things went down: http://www.9news.com/news/surveillance-video-shows-two-teams-race-to-apply-for-denvers-420-permit/495074867

While this was a very unfortunate turn of events after camping out for 27 days to be first in line, we are still optimistic that the City will name us the rightful permit recipient after investigating the facts.

We ask you to help us keep this issue front and center by sharing this with whomever would enjoy it. It’s been a fascinating ride thus far and we want to make sure the City of Denver cannot ignore the glaring fact that this permit process was unorganized, unfair, and very poorly handled.

We are hopeful that this technicality is overturned and the City will do the right thing. We have faith that our elected officials will see the string of failures that led to someone else breaking the rules and being rewarded for doing so.

We believe that we are the only group in contention that can manage 420 properly, with the funds and experience to put together a world class event. In fact some of the very same players that created the debacle on 420 this past April are back again and working closely with Smokey and company. We feel that this is a liability for the city of Denver and something that should not be allowed to happen.

Stay tuned…

 

 


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March 8, 2017 administrator

Two new Congressional Bills have just been introduced that will, if passed, END THE FEDERAL PROHIBITION OF MARIJUANA!

Bill One:

H.R.1227 Ending the Federal Marijuana Prohibition act of 2017

https://www.congress.gov/bill/115th-congress/house-bill/1227/
Click here to download the PDF version

This bill has bipartisan support and was introduced by republican Rep. Thomas A Garret, Jr of Virginia [R-VA-5]. So far, it has been cosponsored by:

Rep. Tulsi Gabbard [D-HI-2]
Rep. Scott Taylor [R-VA-2]
Rep. Jared Polis [D-CO-2]
Rep. Earl Blumenauer [D-OR-3]
Rep. Don Young [R-AK-At Large]
Rep. Justin Amash [R-MI-3]

Official Title as introduced:

“To limit the application of Federal laws to the distribution and consumption of marihuana, and for other purposes”

 

Bill two:

H.R.975 – Respect State Marijuana Laws Act of 2017

https://www.congress.gov/bill/115th-congress/house-bill/975
Click here to download the PDF version

This bill also has bipartisan support and was introduced by republican Rep. Dana Rohrabacher of California [R-CA-48]. So far, it has been cosponsored by:

Rep. Cohen, Steve [D-TN-9]
Rep. Young, Don [R-AK-At Large]
Rep. Pocan, Mark [D-WI-2]
Rep. Yoho, Ted S. [R-FL-3]
Rep. Blumenauer, Earl [D-OR-3]
Rep. McClintock, Tom [R-CA-4]
Rep. Titus, Dina [D-NV-1]
Rep. Hunter, Duncan D. [R-CA-50]
Rep. Polis, Jared [D-CO-2]
Rep. Amash, Justin [R-MI-3]
Rep. Lee, Barbara [D-CA-13]
Rep. Massie, Thomas [R-KY-4]
Rep. Coffman, Mike [R-CO-6]
Rep. Welch, Peter [D-VT-At Large]

Official Title as introduced:

“To amend the Controlled Substances Act to provide for a new rule regarding the application of the Act to marihuana, and for other purposes.”

 

FANTASTIC! HOW DO I GET INVOLVED?

Please contact your representative! Just enter your zip code, click your representatives name and you’ll be taken to their website. All of them have a contact button, click that and let your representative know you want them to support state rights and defend his or her constituents voice.

Alternatively, there’s another little known trick, YOU CAN TEXT YOUR ZIP-CODE to 520-200-2223 and it will reply with your representatives names and phone numbers!

Phone calls are best, letters next, then e-mails! If you can, please call them!


For people who don’t know what to say here’s a quick draft below:

“Hello Congress(wo)man [REPRESENTATIVE-NAME-GOES-HERE],

I am a constituent in your district and I am writing to ask you to stand up for me and the 59 percent of Americans who support full marijuana legalization, and the 71 percent who believe that states, not the federal government, should set marijuana policy.

Cannabis is a job creator and a multi billion dollar industry. Please, this is not a partisan issue, this is a state and democracy issue. We cannot allow the federal government to jail citizens for something they voted to legalize. We can’t ignore the needs of those who haven’t had that opportunity yet or depend on it for medicinal purposes.

States are meant to be democracy laboratories and by allowing the federal government to override the will of the people we are destroying the democracy experiment. I urge you to please support H.R. 975 – Respect State Marijuana Laws Act of 2017, and H.R.1227 – Ending Marijuana Prohibition Act of 2017.

Thank you for taking the time to listen to one of your constituents and supporters”


If you chose to e-mail you can select ‘Health’ ‘Social Issues’ or ‘Other Issues’ as the topic, all should be an option for every congressman.


Many of you at times may have thought, how can I help? Well this is one of those ways. This one thing will take you a couple minutes and when you’re old you can tell your grandkids that you helped fight prohibition and you let your voice be heard.

PLEASE SHARE THIS POST FAR AND WIDE ACROSS YOUR SOCIAL MEDIA  ACCOUNTS! The more people that become aware of this bill the better chance it has of passing. The main stream media is not picking this up. The citizens of this country must advocate for themselves to do what is right and urge members of congress to get this passed.

THANK YOU!


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February 28, 2017 administrator

Press Secretary Sean Spicer threw cannabis advocates for a loop over his suggestion that the Justice Department is not on board with adult-use cannabis in the same way that it accepts, somewhat, the therapeutic uses of the plant for some ailments.

“There’s a big difference between (medical marijuana) and recreational marijuana, and I think when you see something like the opioid addiction crisis blossoming in so many states around this country, the last thing we should be doing is encouraging people,” Spicer said in the press room late February. “There is still a federal law that we need to abide by regarding recreational marijuana and other drugs of that nature,” Spicer continues.


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January 23, 2017 administrator

It’s been a promising start for the newly legal states that joined pot pioneers in Colorado, Oregon, DC, Washington, and Alaska by passing measures to legalize marijuana in November. Last year, Colorado’s cannabis industry brought in more than $270 million in the first quarter of 2016 alone. We exceeded preliminary estimates, and so did Washington. Now it’s California, Maine, Massachusetts, Arizona and Nevada’s time to shine. As of November, those are the next five states to open up the doors of a recreational marijuana market.

 

A new analysis from the Tax Foundation found nationwide legalization of marijuana could generate up to $28 billion in tax revenues (federal, state, and local). According to the report, that is:

  • $7 billion in federal revenue
  • $5.5 billion from business taxes
  • $1.5 billion from income, plus payroll taxes

 

To break that down further, here’s look at the potential prosperity dispensaries can help unlock in each state.

 

Arizona

Arizona’s Proposition 205 is a welcome accompaniment to the approved medical marijuana bill passed back in 1996. The 15 percent tax on retail sales, business licensing and state and local taxes will bolster the current tax revenue up to $82 million per year by 2020. That amount will go 50-50 to local jurisdictions for their education and public health programs.

 

California

California first approved medical marijuana in 1996 but rejected recreational twice, once in 1972 and again in 2010. The newly successful Proposition 64 ushers the state into the recreational market with an imposed 15 percent tax on retail marijuana sales. They will also tax at the processing and cultivation level, to the tune of  $9.25 per ounce on flowers and $2.75 for every ounce. Then comes the state and local sales taxes. The Tax Foundation estimates tax revenues in California will reach $646 million or more, and California has some impressive plans for all that money. The first $25 million raised will go to health and law enforcement related to cannabis legalization, and youth drug education and treatment. A further 40 percent of future revenue will be evenly split between environmental programs, and programs to reduce the incidents of driving under the influence.

 

Maine

Maine Question 1 was passed in November to expand on the medical marijuana bill passed in 1999. With an imposed 10 percent tax on retail sales, the state is estimating $10.7 million per year in tax revenues. Of that, 98 percent will enter a state general fund, with the remaining 2 percent going to local governments.

 

Massachusetts

Massachusetts Question 4 to expand the medical marijuana program that was opened up in 2012. Question 4 proposes a 3.75 percent tax on all cannabis retail sales, plus a state sales tax of 6.25 percent. What will they do with the $50 million per year that those taxes will bring? Some of it will go toward regulating their new market, and the rest will enter a state general fund.

 

Nevada

Nevada passed Question 2 in November after rejecting a medical marijuana bill in 2000 and another recreational bill in 2002. The bill proposed a 15 percent tax on wholesale marijuana sales, plus licensing fees, and retail-level state and local sales taxes. The expected revenue from this could be $48 million per year or more, conservatively speaking. Nevada plans to pour that revenue into administration, regulation, and some education funds.

 

To compare with the states mentioned, Colorado collected $63 million in tax revenue, plus $13 million in licenses and fees during 2014, the pilot year for totally legal adult cannabis use in the state. For more information on how Colorado spends it’s cannabis tax revenue, the Cannabist—a subsidiary of The Denver Post—wrote this piece that breaks the spending down.



December 29, 2016 administrator

Increase in Colorado Tax Receipts

After nearly three full years of being one of America’s first states to allow open recreational marijuana production and sales, no one can doubt that this “experiment” in state law superseding federal law has been a success in terms of generating sustainable revenue from a product that previously produced no revenue at all for the state.

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September 4, 2014 administrator

Aurora announced Thursday it has awarded licenses to 21 businesses as the city’s first recreational marijuana shops, which can open as soon as Oct. 1.

Each of the city’s six wards are allowed up to four recreational pot shops. There will be four shops each in Wards 1 to 5, and Ward 6 will start with one shop.

The city received 58 applications by the July 31 deadline, and the applications were reviewed on a point system.

The Green Solution, which has four stores in Denver already, will have four stores in Aurora.

Aurora has not had any medical or recreational marijuana sales.

Full Article from Denver Post


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