Considerations for marijuana legalization in Canada: Legal cannabis brings tax revenue for Denver, but also new expenses
From a fiscal perspective, legalizing pot seems like a win-win scenario for cities. In theory, marijuana sales tax revenue can fill gaps in the budget, while police and prosecutors spend less time and money going after residents for marijuana possession.
But Toronto city council might want to hold off on planning a spending spree — because legal marijuana costs money, too.
In Denver, the capital of a state where recreational pot sales have been legal for almost three years, much of the tax revenue from marijuana gets spent regulating the very industry that generated it.
"There will be people that will tell you that all this tax revenue is going to fix all your city's problems, and that's simply not the case," says Dan Rowland, who manages communications for Denver's Office of Marijuana Policy.
"It's really important to have that dedicated [revenue] stream to go into implementing this the right way so...
This marijuana news is brought to you by 420 Intel. For the latest breaking cannabis industry news, subscribe to the 420 Intel newsletter. If you'd like to promote your product or service in this area after every article, contact us.
Follow us on Instagram
Connect with us on Linkedin