A recent assessment by the Independent Fiscal Office estimates that over the next five years, legalized marijuana in Pennsylvania may generate more than $1 billion in tax revenue.
According to the report, if marijuana is legalized this year, it may bring in $41 million for the General Fund between 2024 and 2025.
The analysis states that after 2026, that amount rises to $185 million in 2025–2026 and exceeds $250 million annually.
If the divided legislature approves Governor Josh Shapiro’s proposal, recreational marijuana sales are expected to start in January 2025, according to the IFO’s analysis.
In his February budget speech, Shapiro declared, “We’re losing out on an industry that, once fully implemented, would bring in more than $250 million in annual revenue.”
Furthermore, by not legalizing and regulating this, we are just supplying the criminal market and depleting the few resources that law enforcement needs. Time to catch up is now.
At the moment, marijuana is legal in five of the six states that border Pennsylvania, either for recreational or medicinal purposes. Under Governor Tom Wolf, Pennsylvania legalized medical marijuana in 2016. However, the legislature is still debating whether or not to allow cannabis for recreational use.
Last year, senators from Pennsylvania pushed for new marijuana laws. Among their bills was one to decriminalize marijuana, sponsored by senators Sharif Street (D-Philadelphia) and Camera Bartolotta (R-Beaver, Green, Washington).
According to the IFO research, cannabis enterprises may have banking difficulties as long as marijuana is classified as a Schule I substance under the federal Controlled Substance Act.
The research also discusses the possible effects of regulating and taxing skill games, which are electronic games that are frequently found in pubs and petrol stations. A 42% tax on the games has been proposed by Governor Shapiro.
Regarding skill-based games, Shapiro declared, “I think it’s time for a solution.” “We are unable to eliminate them. We ought to tax them and regulate them.
According to the analysis, Pennsylvania’s general fund receipts for the 2024–2025 fiscal year might reach $103 million. In 2025–2026, it would almost triple to $308 million, and in 2028–2029, it would almost top $400 million.
“It is unclear how the proposal might impact the longterm operations of those non-profits,” as per the report. “The estimate assumes that the proposal is unlikely to impact current gaming revenues, because it simply regulates an existing activity, and does not establish a new form of gaming.”
