Oklahoma could generate nearly $500 million if recreational pot is legalized

As intense campaigning on both sides of the issue seeks to sway the March 7 vote, a new report released by the Yes on 820 campaign reveals the myriad economic benefits Oklahoma could look forward to should the Legalization of cannabis for adults to be enacted.

The report, titled “An Economic Impact and Tax Analysis of Oklahoma State Question 820,” outlines an analysis conducted by Vicente Sederberg LLP and the Oklahoma Cannabis Industry Association, finding that the state is expected to pay $821 million in combined taxes and recreation taxes should pass State Question 820.

Of that $821 million in tax revenue, $434 million would be new government revenue generated by the proposed 15% consumption tax on recreational sales, in addition to standard state and local taxes. Sales for adult use are expected to reach approximately $1.841 billion in recreational sales and $2.478 billion in medical sales to qualified patients over the same five-year period.

Looking ahead, Oklahoma is also estimated to generate more than $65 million in cannabis taxpayer dollars from recreational product sales in 2024 alone after a single year of implementation, growing to $105 million by 2028. dollar will rise.

The analysis assumes that leisure sales will begin on January 1, 2024, although it is possible that they will begin sometime in 2023 when they go into effect. It also cites attempts by the state’s current cannabis market to deal with a drop in wholesale prices. While most market watchers believe this is temporary, the report puts the conservative average retail price at $175 an ounce.

The report predicts that tax revenues will slow as the Oklahoma market reaches maturity in 2028 “due to downward pricing pressures from competition and free-market economic principles.” The authors also state that the report’s projected tax revenues are being set at a more conservative pace than what other states have recently recognized, meaning the state could potentially generate far more tax revenues than the analysis predicts.

Legalizing recreational activities seems like the next rational step given that Oklahoma’s medical market has shown exceptional strength since its inception. The report notes that the state has the highest patient-to-population ratio in the country at around 12%, along with its “impressive growth” since voters first approved it in 2018.

Yes on 820 campaign manager Michelle Tilley told ABC 5 News that the group doesn’t take the special election for granted. She stressed the need for an intense final push to ensure Oklahomans get out and vote for it, knowing the question might not pass if they sit back.

“We can feel the energy and intensity building,” Tilley said. “More and more people are joining the effort and want to know how they can help.”

The opposition has generally cited concern for Oklahoma’s children; A newly formed coalition against the legalization of recreational cannabis is dubbed the “Protect Our Kids No 820,” joining Tulsa District Attorney Steve Kunzweiler, former Gov. Frank Keating and other officials who argue that cannabis’s accessibility will actually harm the people of Oklahoma.

“The practical part of this is that it’s just not safe for kids, it really isn’t safe for adults. We don’t know enough about what is added to these substances. I don’t think the regulation ever achieved what it promised us,” Kunzweiler told 2 News Oklahoma, conveniently failing to cite research showing the perceived danger of cannabis for “all adults.”

Tilley argued that SQ 820 is indeed a positive step in protecting children as each product is tightly regulated and tested. She also noted that new revenue would help fund education.

Research has shown that, contrary to prosecutors’ arguments, states with legal recreational cannabis are not seeing increases in youth use. A 2022 study also explored the notion that legalizing cannabis will lead to reduced perceptions of risk of cannabis harm among children, although the results found that individual characteristics at the child level were the main predictor of youth attitudes towards cannabis, not state policy.