Could Measure AB 390 put a 360 on California's budget woes?

What do the former sheriff of San Francisco, a retired Orange County judge, and an assemblyman from S.F. have in common? They all believe that the legalization and taxation of California's so-called largest cash crop could bring in around a billion dollars in tax revenue to the state coffers.

Assemblyman Tom Ammiano introduced a bill on Monday that he considers nothing more than a bit of fiscal common sense, says the SF Weekly who explains that the  Marijuana Control, Regulation, and Education Act would:

"Remove all penalties under California law for the cultivation, transportation, sale, purchase, possession, and use of marijuana, natural THC and paraphernalia by persons over the age of 21," "prohibit local and state law enforcement officials from enforcing federal marijuana laws (more on that later)" and establish a fee of $50 an ounce on marijuana on top of whatever pot will cost in a legal future - which legalization advocates say is about half what it costs now. This tax rate figures at about a buck a joint.

Moreover, the Times' Eric Bailey reports that Ammiano claims that legalization would, among other benefits, allow law enforcement to focus on more serious crimes, and protect nature "from the uprooting of environmentally destructive backcountry pot plantations that denude fragile ecosystems."

But the biggest boon might be to the bottom line,  By some estimates, California's pot crop is a $14-billion industry, putting it above vegetables ($5.7 billion) and grapes ($2.6 billion). If so, that could mean upward of $1 billion in tax revenue for the state each year.

Are you buying it? Some say marijuana is a gateway drug to harder vices, and not at all worth the financial windfall. But what do you think?

-- Tony Pierce

Photo of Manwell Hernandez, an associate at the Cornerstone Collective medical marijuana dispensary by Don Bartletti / Los Angeles Times

Comments

[tom says]

As long as we have drunks running the government, it seems marijuana will just be two names strung together. You really had to stretch to find the anti-marijuana "professor" in Florida.

[Paul]

No, I don't buy the Gateway Drug Theory. It's been disproved again and again and again.

Coffee and Cocaine are stimulants. Does anybody casually throw out such absurd theories like "Coffee is a gateway drug"?

Besides, Alcohol is far more like a Gateway Drug. Hard Drug use is distinguished by a user willing to put their body through hell to get a buzz. That's what I think of with the boozer who goes through puking, hangovers, and liver disease simply to get that buzz from Budweiser.

But we won't ever say that Coffee and Beer are gateway drugs, because they are socially acceptable. It's a shame too, the stressed out caffeine fiend who's dealing with their caffeine crash, and the just plain dangerous alcoholic are far less desirable than the lazy, apathetic stoner.

[Mike Miller]

First off I do not think marijuana is Kali largest cash crop, wine vinyards are. Second 1.3B is low because at least twice that is used for prisons and enforcement. Third legal employment would increase by 1,000,000 because the best pot is home grown and indoors and many unemployed would start a cottage industry and make a living and a conservative number of retail outlets would be 25000 and those stores would be new employers also. Fourth $50.00 an ounce and say $125.00 yearly permit for growers would be my way of regulating with retail outlets only purchasing from growers with permits and state employed auditors keeping tabs would winnow out the black marketeers very quickly. Fifth is Kali does pass this law I suspect a dozen or more states would follw suit very very quickly removing the federal government from its enforcement equation. I'd like to see it sooner than later.
Mike

[Brian Jobe]

if pot is a "gateway" drug, then so are alcohol and tobacco. Anyone who makes that claim as a support of keeping marijuana illegal is ignorant and plain wrong. By making weed illegal the chances that users will come into contact with other ilegal drugs greatly increases, but if you bought weed in a store, you never become meet drug dealers in the first place.

[Dave Griffon]

I think it is a great idea to pass legislation to legalize and tax marijuana. I think it would be a great boost in the economy for California and it would take advantage of the state's largest untaxed cash crop. I think the numbers though are highly underestimated regarding tax revenue based on little is really known as to how many users are REALLY out there. My "educated" guess? I would multiply all the numbers including tax income 10X..... I would suggest careful wording in the legislation regarding cultivation and distribution. Maybe also to help move marijuana dealing from the street to the store, provide "dealers" with tax forms and ID's. These are just merely suggestions. Bottom line is this. There is a good chance this legislation will pass. If it does you will be up against the feds in a big fight. I do wish the residents of California all the luck and hope once again you can set the trend for the rest of the country!

[Chris]

It's about time the people of the United States realize that marijuana use is here to stay. Instead of demonizing the "herb" why not tax the reality of its use? Compared to tobacco and alcohol, marijuana is relatively safe, and ... it has many medicinal uses, as well. So, let's get on with it.

[JD]

Do it. I think pot should absolutely be legalized completely. This would be a good start. I don't smoke it myself, but I work in the criminal justice system. It is a complete waste of resources to go after small time mj users and sellers. And I believe many police will admit they would rather deal with a stoned person than a drunk one.

[Keith]

The war on drugs is a waste of time and money. The most dangerous thing about pot is that it is illegal, something less harmful than alcohol or tobacco. It's a vice, but all things considered, not the vice government propaganda has let on for three generations. Its cousin, which is not an intoxicant, is a huge crop for hemp fiber in other countries, but even it fell victim to our government propaganda. Most pharmacies carried pot or pot extracts until prohibition came along. Prohibition and foolish propaganda pushes the simplistic notion people are incapable to smoke pot or drink booze in a responsible way--in the evening, on their own time, and away from work. We should regulate pot like booze. Selling pot in liquor stores or allowing people to grow their own would break the grip drug cartels have on the border and our national forests, and stop the sleaze campaigns we just witnessed with Phelps.

[Steve Kubby]

The American Medical Marijuana Association endorses Tom Ammiano's bill, because it will exempt medical marijuana from being taxed and will lower the cost of cannabis for everyone else. Normally, AMMA opposes all taxes on marijuana, but this is really more about paying to have the police go after real criminals, which works for us.

--Steve Kubby, Director AMMA

[GEorge Maldonado]

POT NEEDS TO BE LEGALIZED ..BUT THE RICH BEER OWNERS BRIBE THE PEOPLE THAT ARE RESPONSIBLE FOR MAKING IT LEGAL...THATS AT LEAST WHAT A COP TOLD ME..THE OFFICER SAID HE NEVER HAD BEEN ATTACKED BY ANY ONE WHO HAD BEEN HIGH ON POT,BUT WHEN CONFRONTING DRUNK PEOPLE, HE HAD LOST COUNT ON HOW MANY DRUNK PEDESTRIANS HAD ATTACKED HIM,THE OFFICER.

[Grant MacDonald, Chairman & Chief Executive Officer; MACDONALD BANK]

It would be worth trillions in taxes for the treasury.
MACDONALDBANK.com

[BeefMasterX]

It is time to stop making criminals from good citizens. It is important to take pot from gangsters and force them out of the business. It is time to make hemp and pot smoking a tax base.
Tell the alcohol lobbyists we've had enough of them, and vote to regulate marijuana with the same rules that govern the liquid drug we call booze.

[Nikki Jane]

This will be a tough fight, but now is the right time to try. Take a look at this video response to the bill by a lingerie model! I LOVE Cali!
http://www.youtube.com/watch?v=sk-vZ0ot240

[Paul Espinoza]

What took so long for this to make it to the Legislature as a viable fiscal option. Even pot smokers are for this.
I'm not so sure about the "remove all penalties" provision though. The USDA, ATF, IRS and the FDA would have to join in partnership to ensure that nefarious people growing junk would not get lethal product (like razor blades into Halloween chocolate chip cookies) into the market.
OTOH, we'll always have kooks like this around.

[Desmond]

This bill is groundbreaking, both in the campaign for marijuana legalization and the struggle for economic stability in California. If it should pass, and I have a feeling that it should, I would expect that the rest of the country would follow suit shortly thereafter. It's an opportunity too lucrative to pass up, and, most importantly to me, I would no longer be a criminal for using a natural herb with hundreds of beneficent qualities... I hope all goes well!

[danceswithtrees]

I am a conservative toker (rare breed!) It is far past the time to legalize it. Taxing it would be a great idea in these tough economic times. We should do it on a National scale and use it to directly go towards our EXPLODING deficit. All of you Libertarian Conservatives need to speak up. Let's make this happen now.

[Steve Martellaro]

This is not an "over the counter" drug, this is a prescription. Are we going to start taxing all prescription drugs?

[LCMc]

Tax it. It is the largest cash crop in California and you are not going to get people to quit smoking so lets make some money to balance the budget. If it is legalized it would also free up the police to go after real criminals.

[Robert]

Drugs are not worth it. Governments should exist for the good of society. This would not be a good thing.

[Anne W.]

Finally! There's no question cannabis should be legal. It's just a grass. It's a source of revenue that surely has to be as appealing to budget-balancers as any other pot of money sitting unclaimed...(no pun intended)

Beyond its "entertainment value", cannabis has other great qualities. You can use it as a fast-growing, environmentally-friendly source of paper, furniture and fabric.

Plus, it could be an incredible boost to business as well. First you get to have cafes and bars where people can sit and socialize over cannabis confections. Then you get tourism since there will be folks from all over the states traveling to CA for the chance to experience cannabis in legal, safe ways.

Increased business, increased tax revenue, happy people. What's not to love?

[southoc]

Grow and Tax here in California. Stop the Cartels from raking in all th money.

[Erik Self]

So we should legalize it, it makes sense it would keep kids from getting it off the street and treat ti like alcohol and you know it isnt that easy to get adults to buy alcohol for you when your young-- we need the tax money to pay for all the illegal aliens that come to the state -- if it is okay for them to be here illegally than at least let us find a way to pay for them this is a fair and equitable way--pot is peaceful and sense you allow the state to exist in illegality from the immigration perspective than lets go all the way and get these taxes from the mary jane --

[troy]

I guess San Fran wants more tax revenue to support the illegal aliens they so gleefully welcome.

[William Steinberg]

It's not about time, it's about 20 years late. The fact that use of cannabis has increased even with increased law enforcement thrown at it over the years. It's not going away everybody. Too many of us (probably a third) use it as guiltlessly as anyone else has a beer or a glass of wine. It doesn't matter how many half baked studies you throw at us that say it's going to kill us any more than actual statistical proof of deadliness stop anyone from drinking or smoking. The fact is Marijuana doesn't seem to kill anybody. Not like cigarettes and alcohol; that is undeniable. I'm sad to be glad that it's taking the worst economic crisis ever to finally incline the general public to do the right thing and let 1/3 of the people do what they want in private so long as it doesn't hurt them. And even though they're only giving up their prejudices because they need the money, I'll take it.

[Nick Johnson]

Cheers to Ammiano for AB bill 360. It's time we stop putting people in jail for cannibis, and start taxing them. As a vice, it's no more a gateway than alchohol, and no more of a public health menace. Let's tax this hugely profitable enterprise, and turn our state budget deficits into windfalls.