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Here’s How Much CT Could Make from Legalizing Marijuana

February 7, 2017 By Staff
Here’s How Much CT Could Make from Legalizing Marijuana

A new estimate from a nonpartisan legislative office estimates the state could make $30 million to $64 million in its first year of taxing recreational marijuana.

A new analysis from Connecticut’s legislature shows the state can make $30 million to $64 million in full-year revenue if it legalizes marijuana like Massachusetts or Colorado did.

The Office of Fiscal Analysis (OFA) says that if Connecticut taxes marijuana at 10.1 percent (3.75 percent excise, 6.35 percent sales) like Massachusetts, it will make $30 million in 2018, after licensing fees are included. That jumps to $45 million in 2019.

If Connecticut taxes marijuana at 27.9 percent (12.9 percent sales, 15 percent excise) like Colorado, it will make nearly $64 million in 2018, after licensing fees are included. That jumps to $104 million in 2019.

OFA estimates implementing the taxes will cost the state $4.2 million to $9 million in 2018. That means legalizing marijuana would generate the state net $26 million to $55 million in 2018.

The state deficit is estimated at $1.5 billion in 2018. Though $55 million in tax revenue is a small bit of that $1.5 billion, it would put a small dent in the deficit.

Gov. Dan Malloy (D-Conn.) suggested in December he’s opposed to marijuana legalization, but nearly two dozen legislators “have proposed or sponsored bills to legalize marijuana.”