Recreational marijuana in Ohio could mean up to $375 million in annual tax revenue for the state, according to new research from Ohio State University. The study, released just in time for America’s annual, informal marijuana celebration day Wednesday, uses tax estimates from an initiated statute effort to legalize marijuana in the state, possibly via the November 2022 ballot. The study pairs tax rates (10 percent in addition to Ohio’s 5.75 percent state sales tax) from the organizers’ proposal, population growth estimates, and year-over-year revenue data from six other states (Michigan, Illinois, Nevada, Oregon, Washington and Colorado) with recreational programs to make projections for Ohio. Depending on the bullishness of growth estimates and product pricing, the researchers estimated the state will earn somewhere between $276 million to $375 million by the fifth year of operation. “Whatever tax structure is adopted, our analysis suggests it is reasonable to predict that Ohio would collect hundreds of millions in annual cannabis tax revenues from a mature adult-use cannabis market,” the researchers, from OSU’s Drug Enforcement and Policy Center concluded. “But the amount of tax revenue collected would likely still represent a small percentage of Ohio’s $60+ billion annual budget.”

Marijuana Moment, Marijuana Moment, 04/21/2022 08:04:00

Open article: https://www.marijuanamoment.net/ohio-could-generate-375-million-in-marijuana-tax-revenue-annually-if-state-legalizes-new-report-finds/