Marijuana ban costs Florida at least $200 million a year

On November 5, Florida residents will be able to vote on whether to legalize marijuana. What's at stake? Numerous arrests for marijuana use and at least $200 million in tax revenue per year for a huge, recently legalized economy.

In addition, tens of millions of dollars could be saved in the prison system by reducing arrests and prison sentences.

This $200 million figure comes from a 2023 economic analysis by the state of Florida.

A Leafly News analysis adds the estimated cost of 66,000 annual arrests in Florida for marijuana use, plus tax projections due to legalization in other states, and the net financial impact could be many millions of dollars more.

According to a Fox News poll in June, Amendment 3 passed with 66% of the vote. Eligible voters in Florida should register to vote by October 1.

The current penalties for the cannabis ban

(AdobeStock)

“Marijuana is legal enough in Florida,” some voters will say. “There is already legal medical cannabis and hemp.”

And then there's prohibition. According to the Tampa Bay Times, Florida prosecutors have filed about 66,000 marijuana possession charges in 2023.

“Florida is probably one of the states with the most marijuana-related arrests – if not the leader,” said Paul Armentano of NORML.

Holding a bag is a first-degree misdemeanor punishable by one year in prison. In contrast, Florida Amendment 3 legalizes up to 3 ounces of weed and 5 grams of hashish. Amendment 3 states: “The non-medical personal use of marijuana products and marijuana paraphernalia by an adult… is not subject to any criminal or civil liability or sanctions under Florida law.”

Related

It's official: Florida will vote on legalizing marijuana in November!

That would be a turning point in a state where in Florida, a sandwich bag of weed (over 20 grams) can get you a third-degree felony and five years in prison. The number of marijuana charges is increasing every year, reports say.

How much does it cost to enforce the marijuana control system in Florida

So how much do 66,000 marijuana arrests cost Floridians? The state's analysts didn't mention that.

Leafly estimates that the cost of these fees alone start at $13.2 million.

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Each offense requires at least one police hour and one court hour for the indictment, complaint, and arraignment. Police and court officers are not cheap. When you include salary, benefits, and pension, they can easily cost $100 an hour.

By eliminating most marijuana-related arrests, marijuana law enforcement costs are expected to decrease by millions to tens of millions of dollars annually.

Pro-legalization activists believe the actual number could be ten times higher.

In 2010, the pro-cannabis group Drug Policy Alliance calculated that each marijuana arrest costs a state $1,000 to $2,000. That's $99 million a year spent by Florida police officers issuing marijuana tickets and courts serving the paperwork.

California analysts predicted tens of millions of dollars in court cost savings before Prop 64 passed in 2016. California has about twice the population of Florida.

Florida residents also miss out on tax revenue

Not only do states with marijuana bans shell out money to prosecute pot smokers, but Floridians also miss out on tax revenue from economic activity already taking place in their neighborhoods. And that's where the bill really hits home.

Legal weed in Florida would be subject to 6% sales tax plus local taxes and fees.

Florida state economists estimate that legal marijuana “based on the experience of other states… will generate at least $195.6 million annually in state and local sales tax revenue once the retail market is fully operational.”

That $200 million may prove too low. Conservative lawmakers would likely pass a “sin tax” on marijuana. Relative to California's revenue, Florida would collect $500 million annually in taxes from legal marijuana.

What can Florida residents do with $200 million in revenue?

The savings and tax revenues could finance at least 2,000 new teachers.

Passing Florida Amendment 3 would generate revenues and savings that are difficult to quantify. One easy way to measure this is that the savings and tax revenues could fund at least 2,000 new teachers at current rates.

This is a rough calculation for the people who say, “Why should weed be legalized in Florida? Isn't it legal enough?”

Read on to find out more details.

Additional costs: capital crimes, defense attorneys and prison cells

When Leafly talks about “millions to tens of millions of dollars” in cost savings for police and courts, we're being conservative. Prohibition imposes a measurable and immeasurable burden on its victims and society as a whole. We don't count criminal proceedings, defense costs, prison sentences, or probation.

For example, an arrest for a felony can cost the defendant $10,000 to $15,000, explained Christopher Cano, executive director of Suncoast NORML. That money is used to pay for pre-trial rehabilitation to expunge a first offense.

“I know this for sure because it happened to me in 2014,” Cano explained.

And then there are the prison and probation costs.

• According to state reports, about 3 out of 50 people admitted to a prison cell in Florida each year are incarcerated for possession or sale of marijuana.
• About 140 people are incarcerated in a state prison in Florida for marijuana possession.
• The state of Florida estimates that the cost of prison beds, guards and food for each inmate is $88,000 annually.

A significant reduction in the number of marijuana inmates would mean millions of dollars in additional savings.

We will continue to update this post as new information comes to light.

Sources

—Florida Financial Impact Estimating Conference – Adult Personal Use of Marijuana – Serial Number 22-05, July 13, 2023

—'Florida could legalize marijuana, but arrestees still face a tough road ahead,' Tampa Bay Times, July 11, 2024, via Florida Office of the State Courts Administrator

—California Prop 64 – Summary and text with financial analysis

—Drug Policy Alliance, 2010, NY Costs of Prohibition

—Sales tax rate in Florida

—Prison Bed Costs in Florida

—Salary of a school teacher in Florida