ANN ARBOR, MI (MPRN)-- According to a new study, legalizing recreational marijuana would net half a billion dollars in new state tax revenue over its first five years.
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-percent excise tax and a 6-percent sales tax on marijuana purchases.
Economist Andrew Livingston says 4.5 million Michiganders are potential customers.
“When you’re analyzing cannabis markets its important to look at the total number of people that have ever consumed. But the majority of consumption comes from those people who have consumed in the last month or so,” he says.
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.