A new study conducted by ECONorthwest has found that the market for legalized cannabis in Oregon is quite large, and would garner tens of millions of dollars in taxes for the state in the first year.
The study, which was commissioned by New Approach Oregon, the group behind an initiative to legalize cannabis which was recently placed on the November ballot, found that in the first year of legal cannabis sales, Oregonians are likely to purchase over 1.3 million ounces (or 81,250 pounds) of cannabis. This, according to the tax rate put in place by the initiative, would equal over $38 million in taxes for the state; this isn’t counting the money saved from reduced enforcement costs.
The study concludes that if voters approve New Approach Oregon’s initiative this November, legal cannabis could be as low as $140 an ounce, far less than the cost of legal cannabis in Colorado and Washington, where an ounce is averaging anywhere from $350 to $700.
If voters do approve the initiative, the possession, use and purchase of up to 8 ounces of cannabis will be legal for anyone 21 and older, as will the private cultivation of up to 4 plants. State-licensed cannabis retail outlets will be allowed and regulated by the Oregon Liquor Commission.
The study can be found by clicking here.