According to economic analysis from national marijuana consulting firm VS Strategies of Colorado, Michigan marijuana legalization will eventually make $130 million a year in new tax revenue.

The report anticipates that Michigan retail sales would begin in 2020 and estimates that recreational pot will become an $800 million industry by 2024 if voters approve the Nov. 6 ballot measure.

According to the analysts, over the first five years, the state would see a combined $520 million in revenue from a new 10 percent marijuana excise tax and the existing 6 percent state sales tax. The revenue from the excise tax would be divided between roads, schools and local governments.

Combined with medical marijuana dispensary sales, which will also be subject to the state’s six percent sales tax, the state could generate $166 million a year in tax revenue from a $1.47 billion industry.

“We’re also saving millions in law enforcement costs on the other end,” remarked Josh Hovey, a spokesman for the Coalition to Regulate Marijuana Like Alcohol ballot committee. He added, “So this will be a significant gain for the state.”

Not all feel the way Hovey feels. “Anybody who thinks economics in this state will improve because of this proposal is sadly mistaken,” said Scott Greenlee, a Grand Rapids consultant who was a former vice chairman of the Michigan Republican Party. “There’s a very small impact.”


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