URL: http://www.mapinc.org/drugnews/v16/n639/a03.html
Newshawk: Kirk
Votes: 0
Pubdate: Mon, 10 Oct 2016
Source: Forbes Magazine (US)
Copyright: 2016 Forbes Inc.
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Website: http://www.forbes.com/forbes/current/
Details: http://www.mapinc.org/media/769
Author: Debra Borchardt
FIVE MORE STATES ON TRACK TO LEGALIZE RECREATIONAL MARIJUANA
There are nine state ballot measures regarding the legalization of marijuana that will be voted on this November. Five states will vote to legalize recreational marijuana, while the other four states are voting on legalizing medicinal marijuana.
Arizona, California, Maine, Massachusetts and Nevada are all looking to legalize recreational marijuana. Arkansas, Florida, Montana and North Dakota are proposing medical marijuana legislation. Equity research firm Cowen and Company said that if all five measures pass, the percent of the U.S. population and GDP covered by recreational states would grow roughly four times to 23% and 26% respectively.
FILE a€” In this Saturday April 23, 2016, file photo, petition signature gatherer Peter Keyes, right, discusses a petition to legalize marijuana in Sacramento, Calif. For the second time in six years, California voters are being asked to legalize the recreational use of marijuana. This time, supporters of the move have much more financial backing and professional campaign help than they did in 2010. Polls show Proposition 64 with more than the 50 percent of voter support needed to pass. ( AP Photo/Rich Pedroncelli, File )
The biggest and most watched measure is Californiaa€™s Proposition 64. Roughly 60% of the population is in favor and its passage looks pretty strong. a€œI think as of right now, people are cautiously optimistic,a€� said David Dinenberg, chief executive officer of KIND Financial, a leading software company for the cannabis industry.
The California law will allow adults over the age of 21 to possess up to one ounce of marijuana and grow up to six plants in a secure area. There will be a 10% sales tax on adult-use marijuana sales, but no sales tax on medical marijuana. The reason this vote is being watched so closely is that the projected numbers in this market are astounding. If you thought Colorado was putting up some big pot revenue dollars, get ready because California will dwarf that state.
a€œMy personal opinion is that ita€™s already a $2 billion market today and I think it could grow very rapidly to $5 billion,a€� said Dinenberg. He fully expects that the measure will pass. California was the first state to legalize medical marijuana and has a long history of leniency towards recreational usage. The heaviest resistance to the law has actually come from within the marijuana industry in the state. Namely growers in the north part of the state that have wanted to protect their market share and keep outside growers from coming in and setting up shop.
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Most of the numbers that have been thrown around regarding California have been estimates because without regulation, there is little hard data. This legislation aims to fix that. a€œIta€™s going to be a monster market,a€� said Dinenberg.
Nevadaa€™s legislation is named the Nevada Marijuana Legalization Initiative or Question 2. If passed, it will allow adults over the age of 21 to possess up to one ounce of marijuana and be able to purchase it from a licensed retail store and if you dona€™t live within 25 miles of a licensed store, you can grow up to six plants in an enclosed locked area. There will be a 15% excise tax on wholesale marijuana sales, while retail sales will be subject to the standard sales tax. The taxes will be used for regulation and enforcement of the program with the remaining tax receipts going towards education.
MAP posted-by: Matt