Study Shows Cannabis Legalization Would Bring In $1B Over 5 Years

HARTFORD, CT —Before COVID-19, one of the big pushes at the state Capitol was the legalization and sale of cannabis and a new study by the Connecticut Center for Economic Analysis says by authorizing it, the state could collect nearly $1 billion in tax revenue within five years.

The report found that over the first five years of sales, legalization will also bring $784 to $952 million in new tax revenue for the state and $71 million in cannabis taxes for municipalities. In a single year — the fifth year of sales — legalization would result in $188 to $223 million in cannabis tax revenue for the state and $21.4 million for municipalities.

UConn Economist Fred Carstensen, who authored the report, said that legalization will benefit Connecticut at a time when it needs the revenue. It’s a sentiment shared by many lawmakers who have been pushing both for legalization of marijuana and sports betting.

“Connecticut residents overwhelmingly support legalization because it will bring needed public health and public safety regulation to an illegal, underground industry in our state,” Rep. Josh Elliott, D-Hamden, said. “The time to act is now in order to maximize our potential to grow jobs and our economy at a time when it is most needed.”

Read more: https://www.ctnewsjunkie.com/archives/entry/20200907_study_shows_cannabis_legalization_would_bring_in_1b_over_5_years/