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Colorado’s Marijuana Revenue & Oregon’s First Week Bonanza May Spark More States

Saturday, October 10, 2015

 

first full week of legalized marijuana in Oregon yielded a reported $11 million in sales -- and with recent reports showing Colorado brought in more tax revenue from marijuana than alcohol sales, other states might be poised to follow suit. 

According to KGTV,  the Beaver State far exceeded initial revenue expectations this past week -- and outpaced Colorado's debut.

One week in, Oregon is already far ahead of dollars spent on pot compared to Colorado’s first week of legal recreational sales, at $5 million. Washington took a month to sell its first $2 million, according to Marijuana Business Daily.

When Oregon voters approved recreational marijuana, the state set an estimate of $9 million in net tax revenue for the first full year of 2017. But the Oregon Retail Cannabis Association believes it’ll bring in three to four times that much.

Colorado Take, Next States?

On September 16, TIME Magazine wrote "pot is a boon for tax revenues in Colorado, outpacing revenue from alcohol taxes in the fiscal year ending on June 30."

Time's Tanya Basu broke down the numbers. 

"Colorado collected almost $70 million in marijuana taxes during that time, nearly double the $42 million collected from alcohol taxes," wrote Busu. 

In September, MarketWatch.com identified "the next eleven states" that will legalize marijuana. 

{image_2}To identify the states most likely to legalize marijuana next, 24/7 Wall St. reviewed the 11 states where by law residents in possession of small amounts of the drug are not punishable by jail time, and medical marijuana use is permitted. Various moral and practical arguments have helped to catalyze the growing trend of legalization and decriminalization of marijuana. The potential tax revenue, job creation, and reduction of the burden of offenders on state prison systems, for example, have likely been a motivating factor behind the bills to regulate and legalize the drug in many of the states on this list. 

To identify the next states to legalize marijuana, 24/7 Wall St. reviewed states where possession of small amounts of marijuana is not punishable by jail and where medical marijuana is currently legal based on data from The Marijuana Policy Project.

See the Next 11 States That Could Legalize HERE According to MarketWatch

 

Related Slideshow: Ten Things to Know About Marijuana Legalization in Oregon

Here are ten things you need to know now that pot is legal in Oregon.

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1) Drug testing will continue

Despite marijuana being as legally permissible as a pint of beer, many of the largest employers of Oregonians will continue to include marijuana in their employee drug screens. 

Fred Meyer, one of the largest employers across the state, said the company plans to continue drug testing its Oregon employees regardless of the new law. 

Melinda Merrill, Fred Meyer communications director, said the company employs truck drivers, heavy equipment operators and other positions that require drug screening. 

“We have to make our employees safe,” Merrill said.

Companies that employ heavy equipment operators are required to buy insurance. Companies that employ workers who operate machinery while simultaneously employing workers who do not are sometimes offered a lower monthly deductible if they test all of their employees across the board, as opposed to only testing a portion.

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2) Your neighborhood dealer may be able to stay in business

The average price for marijuana in Oregon is among the lowest in the nation at sightly over $9 per gram, according to data collected by priceofweed.com.

The economy for recreational pot in Washington failed to gain the footing that was expected by some experts. The notion of Seattle being crowned as the new Amsterdam went up in smoke after consumers saw how the state’s taxes increased the price of marijuana - three joints can run a Washington customer $75, while a gram of the plant’s dried flowers cost around $30.

While the taxation in Oregon isn’t expected to bump prices that high, customers who have grown accustomed to the state’s high quality, low-price buds and hash oils may turn their noses up at even the slightest increase.

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3) Taxes on pot will be different than Washington and Colorado laws

Marijuana sold from licensed vendors in Oregon will carry taxes of $35 per ounce on marijuana flowers, $10 per ounce on all marijuana leaves and trimmings and a $5 tax on all immature plants or clones. The tax rates will be reevaluated every two years and adjusted for inflation. The revenue will be allocated to support government services - 40 percent will support public schools, 20 percent will support law enforcement, 20 percent will support mental health and 5 percent will support the Oregon Health Authority.

State-licensed vendors may still face obstacles, however, when it comes to their federal income taxes. Internal Revenue Section code 280E denies any tax deductions and credits for businesses that traffic any controlled substances that are prohibited under federal law.

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4) You can’t smoke up wherever you please

The law stipulates that use of marijuana, including injection, ingestion and inhalation of the drug is prohibited in public places. In other words, you won't constanty be seeing (or smelling) people lining sidewalks lighting up a joint.

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5) There are also restrictions on growing

No one is permitted to have more than four marijuana plants at a time - considerably less than the 12 plants that Washington residents are allowed to grow. The law also restricts plants being grown in public view.

Sorry, window-sill gardeners.

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6) Marijuana DUIs may be addressed in future legislation

Unlike the Washington law, which included attached regulations concerning driving impairment, Oregon’s law has more room for interpretation. 

Driving under the influence of marijuana is classified as a class b traffic violation, which carries a presumptive fine of $260 and is not to exceed maximum fine of $2,000. The Oregon Liquor Control Commission has been tasked with researching the subject of drugged driving and presenting its finding to the Oregon Legislative Assembly no later than January 2017.

After reviewing the OLCC report, the state legislative assembly will decide whether passing more extensive driving regulations will be necessary.

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7) Legalization won't take effect until summer.

Anyone over 21 will be allowed to possess small amounts of marijuana for their personal use from July 1, 2015.

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8) Crossing the Columbia River with a state-licensed spliff will catch you a felony

Although marijuana is simultaneously legal in Oregon and Washington, it's illegal to transfer the drug between the two states.

Measure 91 is only applicable to Oregon and marijuana remains illegal under federal law. Even with a physician’s subscription, marijuana is classified as a Schedule I controlled substance - meaning that anyone transporting it across state lines is prosecutable by federal agencies. 

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9) Legalization could mean big money for financial service startups

It’s not just the vendors whose businesses will grow under legalization - companies like Greenpay are expected to expand rapidly once the new legal market gets its footing. Greenpay would allow consumers to instantly purchase marijuana using their smartphones.

Greenpay is a wholly-owned subsidiary of MyEcheck - a publicly traded company whose shares typically trade for less than ten cents on the New York Stock Exchange. With legalization efforts gaining momentum around the country, companies providing auxiliary services for the marijuana industry may create an economic boom.

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10) It’s spreading like the plague

In an interview with GoLocalPDX, proponents of Measure 91 said they’re focused on achieving legalization for other states, including California, in the 2016 election.

 
 

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