Legalizing recreational marijuana would net half a billion dollars in new state tax revenue over its first five years, that's according to a new study.
The study was commissioned by the group behind the November ballot question to legalize recreational marijuana in Michigan.
The tax revenue projection is based on the size of Michigan’s potential marijuana customer base paying a 10% excise tax and a 6% sales tax on marijuana purchases.
Colorado-based economist Andrew Livingston says more than four million Michiganders are potential customers.
“When you’re analyzing cannabis markets it’s important to look at the total number of people that have ever consumed,” says Livingston. “But the majority of consumption comes from those people who have consumed in the last month or so.”
Money from recreational marijuana sales would be earmarked for roads, schools and local governments.
Opponents insist there will be a social cost to legalizing marijuana in Michigan.
