Where does cannabis tax money go?

Cannabis tax dollars: Tackling homelessness, bullying and more

If you live in a cannabis legal state, chances are you are affected in at least one way by cannabis industry revenues. Regulatory commissions in several states approve and grant permits to interested applicants at a reasonable price, resulting in cannabis businesses and facilities in various locations within the states.

Every cannabis legal state benefits from huge tax revenues from its resident cannabis-related businesses. As with most tax revenue in these states, cannabis taxpayers’ money is reinvested back into the economy as soon as it’s collected. To be honest, it no longer makes financial sense for states to ignore the little green seedling. It’s not for nothing that non-legal states might consider the wonders that cannabis tax dollars could create if they legalize the plant and its sale.

Revenue for states and local governments from cannabis taxes

States like California, Alaska, Colorado, Michigan, Massachusetts, Oregon, and Illinois generate billions of dollars in taxes annually from their legal cannabis industries. It’s worth noting that some jurisdictions do not regulate or tax cannabis sales, particularly those that only have medicinal cannabis industries.

The states of Colorado and Washington began collecting cannabis taxes in 2014. Before the onset of the COVID-19 pandemic, both states generated an estimated $450 million annually in state cannabis taxes, which was 1 percent of state revenue. Other states like Oregon, California, Alaska, and Nevada recorded $95 million, $354 million, $15 million, and $87 million, respectively, in 2018.

Over the years, states have released statements showing what this cannabis tax money has been used for. For example, Colorado spends most of its cannabis tax on building or renovating schools, providing scholarships for residents of disadvantaged and low-income communities, providing marijuana education, and establishing rehabilitation and addiction prevention centers.

How states are using cannabis tax dollars

The marijuana proceeds will be used to bring glimmers of hope to communities devastated by the War on Drugs. Large states use these funds as positively as possible. With this fund, most state governments believe they can end the stigma surrounding cannabis use on a project-by-project basis.

anti-bullying campaigns

Colorado has an active anti-bullying program that is funded annually from the state’s cannabis tax money. This program is considered one of the best in the country. It has received local and national praise from parents, alumni, teachers and other monitoring groups for its usefulness in today’s school system.

On November 3, 2015, Colorado voters approved Proposition BB. Under this proposal, the state will be able to keep the additional proceeds from marijuana sales, which totaled about $66 million in 2016. He finances neighborhood initiatives such as anti-bullying classes for the best schools.

Schools had to apply for funding to be considered for the program. In 2017, for the first time, 50 schools were selected to benefit from the state’s pot tax dollars. Since then, the number of students targeted for bullying in schools has decreased significantly (as reported by the Colorado Department of Education).

combating homelessness

Last year, a proposal to donate up to $2 million annually in sales tax revenue from cannabis businesses to support the homeless population was approved by Las Vegas Clark County Commissioners. The money was distributed to three neighborhood nonprofit groups (Lutheran Social Services, Hopelink, and Help of Southern Nevada) that help homeless people in the Las Vegas area.

In Colorado, a few years ago, about $4.5 million in tax revenue was allocated by the city of Aurora to help eliminate homelessness. The Colfax Community Network is responsible for homelessness programs in Colorado.

As the population continues to increase, the number of homeless will also increase. This is a call for state officials to take action to prevent homelessness.

support of school buildings

Earlier this year, Oklahoma spent millions of cannabis tax dollars on underfunded communities to build and improve existing school structures.

Through the Redbud program, Dove Charter Schools in Oklahoma City have earned more than $500,000. The amount raised by the Harding Independence Charter District totaled over $300,000. Even the founding of the tiny Sovereign Community School in Oklahoma City raised about $33,000.

A grant of approximately $1.3 million was awarded to the Santa Fe South Charter Schools. According to Santa Fe South Schools Administrator Chris Brewster, that money can be converted into the funds needed to build athletic fields or an auditorium, facilities that many charter schools lack.

Spreading the message about cannabis safety

Now that the legalization of recreational cannabis is widely accepted, states understand that it is in the best interests of all communities to establish programs that educate youth and adults about the health benefits and risks of cannabis use. These programs are not just limited to cannabis users. Everyone is urged to get accurate information about cannabis. Colorado has allocated millions in cannabis revenue to cannabis education programs.

Getting low-income students through college

Statues not only put students in free and discounted lunchtime programs, but also make some of them eligible for four-year college scholarships. These grants are worth an average of $5,000 per year. The more pot tax dollars generated, the greater the number of students who will benefit from these programs.

More details

Each state has established a distribution formula for its pot tax. Some have special programs that benefit solely from these taxes.

Alaska’s pot tax dollars are split between the general fund program and another program dedicated to reducing cannabis-related crimes in the state. While California uses it to fund all of the administrative costs that go into legalizing cannabis. Excess cannabis tax revenues are used to sponsor programs focused on youth and economic development.

Education programs are a priority in Nevada, while Washington and Massachusetts use their pot tax dollars to provide their residents with the best possible healthcare.

bottom line

In most states, public schools rank first when allocating taxpayer money to cannabis. In Colorado, the first $40 million in cannabis excise taxes funds the construction of public schools each year. Local governments, affordable housing initiatives and addiction services will receive additional funding. It is uplifting to see money from what was once considered a “bad drug” being used to fund positive programs.

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