Delaware could collect more than $43-million a year in tax revenue through regulating and taxing legal marijuana, according to a report prepared by State Auditor Kathy McGuiness.
The special study used data available to the public, which indicates that legalizing the recreational use of marijuana for adults 21 or older would create a $215-million dollar industry. The report assumes what’s called a ‘reasonable’ 20-percent excise tax to arrive at the projected tax revenue for the state of $43-million.
Also, McGuiness said regulating the sale of marijuana could generate more than 1,000 new jobs over five years.
“Forty-three million dollars in state tax revenue would be a boon to Delaware’s coffers,” McGuiness said. “That money could be used to plug budget holes in the short term and would continue to provide revenue for all kinds of important initiatives in the long term.
“Statistics show that public opinion on allowing recreational marijuana for adult use has changed dramatically in the last few years, with a majority of Delawareans now supporting it,” McGuiness added. “The prohibition on marijuana has only led to a robust black market, which could be minimized by responsible and thoughtful legalization.”
To read the special report, CLICK HERE
“With neighboring states either legalizing it or considering doing so, taking action now is the only way to prevent Delaware from being at a competitive disadvantage in the future,” McGuiness said. “The First State cannot and should not be the last state to approve legalization in the region.”