Legalizing Marijuana Could Generate Billions for Calif., Lawmaker Says

A California legislator has introduced a bill to legalize and tax marijuana, saying that doing so could raise $1.3 billion in annual revenues for the state, the Sacramento Bee reported Feb. 24.

Legalization also would free up police to focus on other crimes, said Assemblyman Tom Ammiano, the San Francisco Democrat who proposed the legislation, AB-390. The bill calls for charging marijuana wholesalers $5,000 up front and $2,500 annually to distribute the drug, and fees of $50 per ounce sold on retailers.

Smoking marijuana near schools would be banned, however, as would open sales of the drug.

Currently, California imposes fines of $100-$350 for possession of small amounts of marijuana, and six-month jail terms and base fines of $500 for possession of larger quantities of the drug.

Ammiano said the measure would generate $990 million from fees on sellers and $349 million from sales tax. California’s yearly marijuana crop is worth an estimated $4-14 billion.