CNN Money (HT: TaxProf Blog) has published a 50-state ranking of the potential tax revenues from legalizing and taxing marijuana. It is based on state-by-state marijuana consumption from Jeffrey Miron’s Budgetary Implications of Marijuana Prohibition:
|Projected marijuana tax revenues*|
|District of Columbia||2.8|
|* Revenues based on state-by-state marijuana consumption, assuming pot were legalized. Source: Prof. Jeffrey Miron, “Budgetary Implications of Marijuana Prohibitions,” June 2005.|
Revenue from taxation of marijuana sales would range from $2.4 billion per year if marijuana were taxed like ordinary consumer goods to $6.2 billion if it were taxed like alcohol or tobacco.
…Replacing marijuana prohibition with a system of legal regulation would save approximately $7.7 billion in government expenditures on prohibition enforcement — $2.4 billion at the federal level and $5.3 billion at the state and local levels.