Legalization of Marijuana: What Could Happen?
Tom Ammiano’s bill has been modified and I haven’t found the State Board of Equalization’s analysis of it. However, much of the analysis of his older bill still holds true. Here are some excerpts I found interesting.
According to the report titled Marijuana Production in the United States (2006), an estimated 22.3 million pounds of marijuana was grown in the U.S. in 2006 with a value of $35.8 billion. California was the top producing state; it produced 8.6 million pounds with a value of $13.8 billion. The report also discusses that, although most marijuana is produced for local, in-state use, California is considered an export state in which marijuana is produced for both in-state use and export to other states. Our literature review indicates that estimated consumption of marijuana in California amounts to one million pounds per year, or 16 million ounces.
• Legalization of marijuana would cause its street price to decline by 50 percent.
• This 50 percent decline in price would lead to additional consumption of 40 percent.
• The imposition of the $50/ounce tax would then lead to reduced consumption of 11 percent.