Legalizing marijuana could mean $82 million in annual revenue for RI


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marijuana tax revenue estimatesLegalizing marijuana in Rhode Island would generate $21.5 to $82 million in new tax revenue, according to a new report from OpenDoorsRI a group that works with formerly incarcerated people in Rhode Island.

“Resulting taxes would generate $7.6 to $21 million for alcohol and drug abuse treatment and education, $10.5 to $50 million for the general fund, and $1.9 to $5.2 million for medical marijuana research,” according to a press release with the new report.

Read the full report here.

The two estimates are based on current marijuana use which is difficult to monitor accurately because it is unregulated. The report assumes .55 percent of American pot users live in Rhode Island* and use between 1 and 3 grams of marijuana weekly and pay $292 to $375 an ounce.

The report says Rhode Islanders who grow their own pot will not be taxed, according to the current bills before the General Assembly.

The new report indicates cost savings on criminal prosecutions would be less dramatic, estimating a savings of about $100,000. “While the collective financial savings are not huge, this legislation will free up important bed space, police time, and prosecution and judiciary time that is currently spent prosecuting these cases every year,” it says.

Far greater are what the report calls the “human costs” of keeping marijuana illegal. It uses the real-life story of Providence native Josh Giorgi, who was arrested for selling pot while a student at URI in 2006.

Josh Giorgi was a freshman at University of Rhode Island studying wildlife conservation when he was arrested for marijuana delivery in an undercover operation in 2006. The sting resulted in the arrests of nine individuals for drug delivery charges, but Giorgi was one of only two that ended up with a prison sentence. Giorgi served 13 months in prison in both the training school and the Adult Correctional Institute for the charges, and he will be on probation until he is 28. Giorgi, a Federal Hill native, says he was dealing marijuana on a small scale to help pay his tuition. He was never arrested for anything else prior to or since that conviction.

After release, he says he applied to jobs and apprenticeships everywhere but most places would not take him because of his record. He started working in a local grocery store that did not do background checks. He continued to work hard and find more skilled employment, and for the last three and a half years, he has worked for an international manufacturing company with offices in Rhode Island, working his way up to logistic coordinator. He owns a house and is now a father.

Despite his hard work and success, he says that because of that one mistake, he was treated like a serious criminal, and he continues to pay a heavy price. He was unable to re-enroll in school and was never able to complete college. Though he hopes to return at some point, his felony record continues to present obstacles.

“I made a mistake, but I am not a criminal,” he says. “I do not want to see anyone else’s life ruined like mine was for selling marijuana, but as long as people use marijuana, they will buy it from someone. So someone will keep going to prison until people that want it have a legal way to buy it.”

*Corrected. An earlier version of this post said .55% of RIers use pot. Jared Moffat of Regulate RI said about 13 percent of Rhode Islanders use marijuana.

Portland legalizes pot; Colorado to make $70 million in taxes

portland potRhode Island lost it’s chance to become the first place on the East Coast to legalize marijuana yesterday. Portland, Maine gets that honor after 70 percent of the voters passed a ballot measure that ends pot prohibition in Maine’s largest city.

“Most Portlanders, like most Americans, are fed up with our nation’s failed marijuana prohibition laws,” David Boyer of the Marijuana Policy Project told the Huffington Post. He’s right, according to a new Gallup poll that shows 58 percent of Americans favoring legalization. In total four cities, three in Michigan, voted to legalize marijuana.

But only Colorado approved a measure to profit wildly from legalization yesterday. That state expects to take in about $70 million a year from the new tax with about half being earmarked for education.

“Marijuana, Cheetos & Goldfish all legal in CO,” Governor John Hickenlooper tweeted. “Now we’ll have the $$ to regulate, enforce & educate.”

Activists and Rolling Stone magazine predict Rhode Island could become one of the next states to legalize marijuana as local legislators have been bringing up such legislation for the past several sessions.

What should we do with our new revenue?

Bills To Tax Pot Introduced At State House, Congress


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Just as Rhode Island legislators are introducing a bill that would legalize and regulate marijuana like alcohol, Congress will consider a bill that would allow states to do so.

Rep. Edith Ajello and Senator Donna Nesselbush will each introduce bills this week that would treat pot like alcohol; it would be taxed and sold at licensed stores. Ajello told the Associated Press a tax on marijuana could raise $10 million and that it would save $20 million in prosecution costs. That’s a net gain of $30 in state revenue.

Rhode Island has been making moves toward legalizing marijuana, and national advocates see RI as one of the four next states to end pot prohibition. Last session less than an ounce was “decriminalized” or made a ticketable offense. That bill and one similar to the one expected to be hotly debated this year were both championed by Ajello.

Meanwhile, in Washington D.C., two congressmen introduced a bill on Tuesday that would allow states to set their own policies with regard to marijuana. It would also add a federal 50 percent excise tax to the sale of marijuana, according to an AP story from the Denver Post.

That bill is sponsored by Democratic Reps. Earl Blumenauer of Oregon and Jared Polis of Colorado. It’s based on a previous bill sponsored by Reps. Barney Frank and Ron Paul.

“You folks in Washington and my friends in Colorado really upset the apple cart,” Blumenauer said. “We’re still arresting two-thirds of a million people for use of a substance that a majority feel should be legal. … It’s past time for us to step in and try to sort this stuff out.”

Public Defender Wants to Legalize Pot


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Add Rhode Island Deputy Public Defender Barbara Hurst to the list of people who think the state should decriminalize possession of less than an ounce of marijuana. In fact, she endorsed legalizing and taxing marijuana too.

She sent a letter to the Senate committee considering a bill tonight that would make possession of less than an ounce of pot punishable by $150 ticket instead of up to a year in jail.

“The RIPD is of the opinion that the changes contained within these two pieces of legislation, while taking different approaches, make sensible and timely modifications to our state’s criminal justice and enforcement policies The RIPD is also of the opinion that the collateral benefits to be realized from these changes would be added revenue to the state, and a more efficient allocation of limited criminal justice resources.

Seventy years of marijuana prohibition have turned a little-known medicinal herb into a product that’s been used by nearly half of all Americans, including President Barack Obama and California Gov. Arnold Schwarzenegger. Given this widespread use and acceptance the state has no business making responsible, adult marijuana consumers into criminals. And independent scientific research consistently concludes that marijuana is far safer than alcohol- both in risk of addiction and toxicity.”

Ending the prohibition on marijuana, she said in her letter, could save the state some $12 million.

Read the full letter HERE.