Arkansas residents have probably noticed a blizzard of pro- and anti-marijuana legalization ads on their televisions. Next month, citizens will have the chance to legalize the herb for adult use. Many residents wonder where the tax money from weed might go, reports KAIT.
The amendment, Issue 4, specifies 10% of the revenues will go to law enforcement. Another 10% goes to the University of Arkansas Medical Center for cancer research.
Scott Hardin with the Arkansas Department of Finance and Administration said it is tough to tell how much money that 10% might be. That’s especially when state officials remember their inaccurate medical marijuana projections.
“We projected that there would be 40 to 50 thousand people that would ultimately obtain patient cards when the market was fully mature,” Hardin said. “Well, as of today, there are 92,000 people with patient cards. So it is certainly not an exact science.”
Responsible Growth Arkansas Projects $460M Revenue
Hardin said many medical card holders have wondered about the point of having it if the amendment is passed. But he said there would be a financial benefit for those holders.
“The incentive to keep your patient card is the recreation will be taxed at 16% on a purchase,” Hardin said. ”So if you buy $100 worth of product you’re going to pay $16.50 in state taxes. While medical holders would not have to pay a dime.”
Hardin said the state has not completed its projections. But Responsible Growth Arkansas, the pro-legalization group behind the amendment, projects $460 million in revenue.
“It Is Still Just Too Early To Tell”
“It is still just too early to tell,” Hardin said. “We have 92,000 people with medical cards, and it is just so hard to think of how many more people would add on to that number because anyone over 21 would be able to purchase it.”
Arkansas medical Cannabis sales hit $200 million this year, reports the Cannabis Business Times.
If the Responsible Growth proposal passes, there will be 120 additional dispensaries. These shops could open up as soon as March 2023.
Issue 4 will be on the November ballot.
