If there was ever a reason for a state to consider marijuana legislation it would be the potential billions upon billions of tax revenue that could pour in.
According to new economic analysis from Vicente Sederberg LLP, given the estimated adult-use marijuana market, there would be $2.7 billion in cannabis sales annually in Texas. And if the state followed Colorado’s tax model, it could potentially bring in more than $1.1 billion in marijuana tax dollars per biennium.
The comparative analysis also projects that 20,000-40,000 jobs would be directly created in the legal industry, in addition to ancillary positions for “contractors and construction firms, electrical and water service providers, HVAC manufacturers and installers, processing equipment producers and retailers, and other professionals.”
“We also expect it would bolster the hospitality industry, which would benefit communities that rely on tourism; especially those that have recently been severely impacted by the novel coronavirus, such as San Antonio, Houston, and Corpus Christi,” read the report.
Texas additionally could also see an extra $10 million annually if business licensing fees are set at $5,000.
“In addition to generating revenue and creating jobs, regulating cannabis for adult use would also realize significant criminal justice savings,” the report revealed. It also finds that Texas would save an estimated $311 million per year in criminal justice resources if marijuana was legalized.
“States across the country are seeing the benefits of legalizing and regulating cannabis,” Shawn Hauser, a partner at Vicente Sederberg stated. “It is inspiring lawmakers in prohibition states to reexamine the efficacy and costs of their current policies and take a closer look at the alternatives.”
“A regulated cannabis market would be an economic boon for the Lonestar State,” she said. “Hundreds of millions of dollars in new tax revenue and tens of thousands of new jobs would be especially helpful in overcoming the losses stemming from the COVID-19 pandemic. Texas is leaving an enormous amount of money on the table by keeping cannabis illegal.”
