Voters have determined to legalize and tax leisure marijuana in these 4 states
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Voters in four states on Tuesday gave the go-ahead for measures to legalize and tax adult marijuana.
Arizona, Montana, New Jersey and South Dakota have joined the 11 states that have already legalized the recreational pot.
These other states are Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington.
In Washington, DC, adults 21 years and over can own up to 2 ounces of marijuana and can transfer up to 1 ounce to another adult. However, you can still be arrested for selling it.
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Voters also approved measures for medical marijuana in Mississippi and South Dakota.
“New Jersey legalized it, but so did deep red South Dakota and Montana,” said Steve Hawkins, executive director of the Marijuana Policy Project. “It shows that Americans, regardless of political ideology or party differences, support the legalization of cannabis.”
It also helps that raising a legal pot could help states strengthen their coffers in the face of the current economic downturn. It depends on their approach to the tax, policy experts said.
How much buoyancy states get from pot sales depends on how they structure the tax and how the individual states proceed with licensing and regulation.
Many countries often impose an excise tax on the sale of weeds, as well as a general government sales tax.
“If you set prices too high, everyone goes black,” said Ed Zollars, CPA and partner at Thomas Zollars & Lynch in Phoenix and an instructor at Kaplan Financial Education.
Similarly, a tax based on the price of marijuana products – versus a tax based on consumption or weight – could result in volatile revenues, especially as the pot becomes more widely available and prices fall, said Ulrik Boesen, Senior Policy Analyst at the Tax Foundation.
“That’s why we always say with excise duties, if you tax by quantity, you probably have more stable income,” he said. “Even if price trends are unpredictable, we can predict how many people will buy in terms of weight.”
Below is a list of the recreational pot initiatives that voters pushed forward yesterday.
The north rim of the Grand Canyon in Arizona.
Nico De Pasquale Photography | Stone | Getty Images
Voters approved proposal 207, which provides for a tax of 16% on the retail price of the pot and a state sales tax of 5.6%.
The measure allows adults to have an ounce of marijuana and an adult to have up to six plants in their home.
Annual sales of around $ 166 million are expected.
These funds would be used for community colleges, city police, sheriff and fire department, and more.
Glacier National Park in Montana.
Jordan Siemens | Getty Images
Montanans gave the go-ahead for I-190, which would impose a 20% tax on the retail price of recreational marijuana.
The income from the taxes flows, among other things, into the general fund of the state as well as into special income accounts for nature conservation, veteran services and drug abuse.
The initiative would also legalize the possession and use of 1 ounce or less of marijuana. Adults are allowed to grow up to four marijuana plants and four seedlings in their home for personal use.
Jersey City, New Jersey.
Dong Wenjie | Moment | Getty Images
Garden State voters were largely in favor of Question 1.
The initiative would change the state constitution and allow recreational marijuana use. That would make New Jersey the first country in the Central Atlantic to do this.
The sale of leisure pots is subject to the state sales tax of 6.625%. Local governments are allowed to levy an additional fee.
Downtown Rapid City, South Dakota.
Blaine Harrington III | The image database | Getty Images
The South Dakotans voted for Amendment A, which puts a 15% excise duty on the retail price of marijuana.
It would also allow adults to own up to 1 ounce of marijuana.
Individuals residing in a jurisdiction with no licensed business are allowed to grow up to three plants in their home in a locked room. You are not allowed to keep more than six plants in one residence at a time.
Excise tax revenue goes to the general fund and South Dakota public schools.