The Brach Eichler law firm estimates that $300 to $500 million could be collected in tax revenue and fees from the legal NJ cannabis industry.
The overall revenue from the legal cannabis business could be close to $1 billion.
Two Brach Eichler lawyers are Governor Murphy’s healthcare transition committee. The firm is based in Roseland, NJ in Essex County.
With the country in so much debt, the legal cannabis industry can bring in a windfall of revenue throughout New Jersey and the United States.
These estimates also do not include the reduction in expenses such as incarceration and policing costs which will save the state even more in the already strained budget.
Nevada recently allowed the use and sale of cannabis for adults throughout the state. Extrapolating the monthly average over an entire year, it is estimated that Nevada has a $378 million annual cannabis industry. This represents a low estimate, considering sales seem to be accelerating.
Last week U.S. Attorney General Jeff Sessions rescinded federal guidance put into place during the Obama administration. The guidance prohibited federal funds from being used to police legalized cannabis organizations. Despite Sessions’ decision, the legislature is expected to move forward with a policy to launch the NJ cannabis industry.
NJ Cannabis Industry Debate
State Senate President Steve Sweeney (D-Gloucester) said the action taken by Sessions on Thursday was not going to deter New Jersey from moving forward with plans for the legalization of recreational cannabis. The decisions being made were not going to hinder the benefits for economic growth and social reform. He is adamant about launching an NJ cannabis industry.
“We have taken a cautious and thoughtful approach in studying legalization for New Jersey. And we have learned from the experience of other states,” Sweeney said. “We will continue to work towards legalization and will resist any attempts by Attorney General Sessions or the Trump Administration to impose its will on the states and to stop the progress that has been made to reform the prohibition-type mentality that criminalizes the use of marijuana.”
Throughout the country, cannabis is a thriving industry.
If cannabis businesses were legalized tomorrow and taxed as normal businesses with a standard 35 percent tax rate, cannabis businesses would infuse the U.S. economy with an additional $12.6 billion this year,” said Giadha Aguirre De Carcer, the CEO of New Frontier, to the Washington Post.