Our human race has been cultivating and consuming cannabis as far back as 7000 BC in China (Russo et al., 2008). In the United Sates, Congress imposed federal prohibition towards the recreational, industrial, and therapeutic use of cannabis with the Marijuana Tax Act of 1937. However, these modern times have provided an opportunity for marijuana with the legalization of cannabis in the states of Colorado and Washington. This new frontier offers a huge market potential for the industry. Economists to law enforcement authority agencies put together figures for the probable market ranging from $45 billion to over $120 billion a year (Bloomberg). Since legalization of marijuana is unprecedented globally, the future for this industry is more than promising.
As an example, the estimate of fiscal impact in the state of Colorado will depend on the value of marijuana sold, the regulations and fees adopted by the Department of Revenue and local governments, and the future actions taken by the state legislature. Amendment 64, states that state revenue from sales taxes and licensing fees is expected to increase between approximately $5.0 million and $22.0 million per year. Currently, $5.7 million is allocated per year by the DOR for licensing, regulation, and enforcement costs related to medical marijuana. New cost estimations increase to $1.3 million in the first year and $0.7 million annually thereafter in order to expand DOR regulation. Fees assessed on marijuana establishments will likely modify to pay for the new cost estimations.
colorado - the centennial state
Colorado has a powerful consumer basis having approved medical marijuana use back in 2000. From over 100,000 medically approved patients and millions of recreational users, the medical marijuana industry will have an interesting transition to the recreational level.
colorado county information
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Where is the U.S. economy heading? Will it remain weak, begin to expand more rapidly, or sink into a deeper recession? Recently, the Dow Jones Industrial Average just hit an all time high. It's estimated that Washington's legalization of marijuana could bring the state an additional $500 million in tax revenue (WPTV reports). Colorado's pot legalization legislation, Amendment 64, is estimated to create $60 million for the state in combined savings and additional tax revenue (Colorado Springs Business Journal). Including lost tax revenues, enforcing the marijuana prohibition costs taxpayers $41.8 billion annual (Forbes). The city of Oakland, California raised $1.3 million in tax revenue from medical marijuana dispensaries in 2011, 3 percent of the city's total business tax revenue and Colorado pulled in $5 million in sales taxes from medical marijuana businesses (The New York Times). Marijuana was considered "underground" sales, but with the legalization of it, we can add it to total production of goods and services produced in our country, which will cause our GDP to rise.
support for making use of marijuana legal -- 50% of america
S.R. Hadden Industries Ltd. represents the preliminary voyage to engage with the changing business model for this growing industry of recreational cannabis. America is shifting its view on cannabis with open eyes and an aware mind. Gallap conducted a survey depicting 50 percent of the US population leaning towards federal legalization of marijuana, a 38 percent increase from 1970. Illinois, Iowa, Kansas, Kentucky, Maryland, New Hampshire, North Carolina, New York, and Oklahoma, these nine states with pending legislation to legalize medical marijuana are more than suggestive about their voice on cannabis (procon.org). Should any of those states legalize, they will be joining a club of 18 states whom already have legal medical marijuana (procon.org). California having started the medical marijuana movement in 1996 exercises heavy incentive to join the ranks of fully legal states. Rob Kampia, Executive director, Marijuana Policy Project writes on the Huffington Post how Alaska, Rhode Island, Maine, Oregon, California, Massachusetts, and Nevada all show support to end the marijuana prohibition.
Marijuana is considered federally illegal because of the chemical makeup of tetrahydrocannabinols or THC and its variants. The Department of Justice has marijuana classified as a Schedule I controlled substance under the Controlled Substance Act (CSA). State legislatures that have conducted or are in the process of pending amendments to their laws regarding cannabis are still condoning federally illegal activity. Users and voters have not been discouraged by federal law for the past 17 years. "We've got bigger fish to fry," President Obama stated in an interview with ABC news. He mentions that recreational users are not "top priority" of federal law enforcement agencies. "It would not make sense for us to see a top priority as going after recreational users in states that have determined it legal," says Obama. He does however, iterate that he does not support widespread legalization of marijuana "at this point".