Ben Livingston writes in Slog about how the state Office of Financial Management was using some fuzzy calculations to overestimate the tax revenues that’ll be generated by I-502. It’s not terribly unusual to see drug law reformers overstating this case, but it’s a clear sign of how times have changed when a state agency is doing it.
This concern over failing to pull in the expected revenues from I-502 is echoed by Mark Kleiman, the state’s new “pot consultant”, in his recent interview on TVW (which you can see at the bottom of Livingston’s post). From that same interview, Kleiman is additionally concerned about whether people who are already in the medical marijuana community will switch over to the non-medical market when it’s available:
Washington state many he headed toward a situation where recreational sales of marijuana are not profitable due to heavy taxes, regulations and, most importantly, competition from the untaxed “collective gardens” where the state’s medical marijuana is grown, Washington’s newly hired pot consultant said last week.
“Any revenue estimate depends on actually having people come to the licit market rather than having them use one of the parallel markets,” UCLA professor and author Mark Kleiman commented last week’s episode of the Washington-based news program “Inside Olympia.” “What if you gave pot legalization and nobody came? It is entirely possible that by the time we finish regulating and taxing this product, it’s going to be uncompetitive with what you can get at the collective gardens.”