Wednesday 22 March 2017

Legalizing Pot And Marijuana Tax Revenues To Be Focus Of Legislative Hearing


By Gregory B. Hladky 

Wednesday's big legislative hearing on legalizing pot in Connecticut may have more to do with the state's huge money problems than with the issues surrounding marijuana use.

The bill to legalize recreational cannabis calls for a total state tax on pot sales of 30 percent, and the plan's supporters say that could bring in $100 million a year to help solve projected billion-dollar deficits.

Gov. Dannel P. Malloy has called the potential influx of pot tax revenue "blood money," and other opponents warn of the social, legal and financial troubles surrounding cannabis use. Many lawmakers are clearly uncomfortable with the idea of approving recreational marijuana and don't think it can pass this year.

But the Senate's Democratic leader, Martin M. Looney of New Haven, thinks the financial crisis may convince a lot of doubters to vote for legalization.


"I think the chances will increase as our budget difficulties increase and time moves on," Looney said Tuesday legalizing marijuana. "People who are not willing to vote for it today may be willing to vote for it in June."


Connecticut is facing a $1.7 billion budget gap for the fiscal year that begins July 1. Malloy has proposed a laundry list of harsh and unpopular spending cuts to cities and towns, social services and environmental programs, and lawmakers are scrambling to come up with alternatives.

According to supporters of the legislation, pot taxes would include a 23.65 percent gross receipts tax plus the 6.35 percent sales tax, for an effective overall rate of 30 percent. The bill calls for alegalization date of July 1, 2018.

Looney said experts estimate that pot taxes would bring in $13 million in revenue in the first six months, $64 million in the first full year of legalization, and $100 million a year after that.

The legalization bill would prohibit pot use by anyone under 21; limit legal possession to no more than 1 ounce of marijuana; and allow home cultivation of five plants per adult. The legislation would allow for five types of marijuana businesses, all licensed and regulated by the state: pot retailers, lounges, cultivation facilities, product manufacturers, and laboratories.


Cities and towns would have authority to ban marijuana businesses or limit their numbers within a municipality's jurisdiction. Employers could continue to prohibit workers from using or possessing pot on the job.

Connecticut faces legalized marijuana competition from several of its neighbors. Voters in Massachusetts and Maine have approved recreational pot and officials in those states are now debating how and when to put legalization into effect. Rhode Island lawmakers are now weighing recreational marijuana. .

The Massachusetts plan would allow legal recreational pot as of July 2018 – the same time frame specified in the bill that will be discussed at Wednesday's public hearing before the General Assembly's judiciary committee.

At a Massachusetts hearing Monday, officials from that state also estimated that state tax revenue from legalized cannabis could eventually increase to $100 million annually.

Complicating things are mixed signals from President Donald Trump's administration that a renewed federal crackdown on recreational pot may be in the works. Under federal law, marijuana is still considered a dangerous Schedule I drug along with cocaine and heroin.


Advocates of legalizing pot argue that millions of dollars worth of marijuana is already being used in Connecticut. They say legalization would undercut that illegal market, allow more controls over use of the drug, and set standards for production and marketing of pot.

A 2015 Quinnipiac University Poll found that 63 percent of Connecticut residents surveyed supported legalization of recreational cannabis.

Possession of small amounts of marijuana has already been decriminalized in Connecticut, and the state's medical marijuana program is rapidly expanding.

Critics counter that making marijuana more easily available will increase its use among adults and minors, create additional health, addiction and law enforcement. Police officials are worried about how to enforce new pot laws and prevent driving while under the influence of marijuana.

Legalizing pot isn't a partisan issue in Connecticut. Opponents include some top GOP legislative leaders as well as Malloy, a two-term Democratic governor who has often clashed with Republicans.

Looney's co-sponsors of the pot bill include Republican Rep. Melissa Ziobron of East Haddam.

Eight states have already legalized recreational pot.

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