The legalization of marijuana for recreational purposes in Minnesota has raised concerns among Democratic Wisconsinites about their state’s drug policies and the potential tax revenue Wisconsin may be missing out on. With neighboring states like Michigan, Illinois, and now Minnesota allowing cannabis consumption in some form, Wisconsin is entirely surrounded by states that have legalized marijuana.
According to analysis from the Minnesota Department of Revenue, the legalization of marijuana in Minnesota could generate around $110 million in tax revenue by 2027. This figure highlights the potential economic benefits that Wisconsin could be missing out on by not legalizing cannabis.
In nearby Illinois, dispensaries made over $1.5 billion in cannabis sales in 2022, with approximately 15% of those sales coming from dispensaries in counties bordering Wisconsin. Analysis from the Legislative Fiscal Bureau estimates that half of these sales came from out-of-state residents, including Wisconsinites. It is estimated that Wisconsinites contributed around $36 million to the $462 million in tax revenue that Illinois received from cannabis sales in fiscal year 2022.
Wisconsin Senate Minority Leader Melissa Agard, a strong supporter of cannabis legalization, expressed her concern about Wisconsinites spending their money in neighboring states instead of in their own state. She believes that Wisconsinites would prefer to keep their money within the state and contribute to the local tax base and economy.
Although the legalization of marijuana in Minnesota may tempt some Wisconsinites to make the journey across state lines, it may be a while before they can purchase cannabis legally. Minnesota has yet to establish a licensing system for marijuana businesses, delaying the opening of dispensaries until at least 2025.
However, Minnesota’s tribal governments have taken advantage of this opportunity and have already opened the first recreational marijuana dispensary in north-central Minnesota. This means that half of Wisconsinites above the age of 21 live within a 75-minute drive to a recreational dispensary, according to a study by the Wisconsin Policy Forum.
The potential for revenue from marijuana sales is evident in states like Michigan, where dispensaries quickly sprouted, resulting in a significant influx of funds. In 2022 alone, over $2 billion worth of recreational marijuana products were purchased in Michigan by both in-state and out-of-state residents. Michigan has used this revenue to fund K-12 education programs and infrastructure.
While Democratic Governor Tony Evers has consistently sought to legalize both medical and recreational cannabis, Republican legislative leaders have opposed such measures. However, last year, Republicans granted a public hearing for a medical marijuana proposal for the first time, indicating a potential shift in their stance. Although no GOP medical cannabis proposals have been introduced this session, Assembly Speaker Robin Vos stated that the Assembly is working on a proposal to be introduced in the fall.
Despite popular support for cannabis legalization in Wisconsin, the current legislative maps give Republicans a disproportionate majority, making it challenging for voices in favor of legalization to be heard. However, a recently filed lawsuit seeking to redraw the state’s political maps could potentially address this issue.
Overall, the legalization of marijuana in Minnesota and the surrounding states highlights the potential economic benefits and tax revenue that Wisconsin may be missing out on. As neighboring states capitalize on the cannabis industry, it remains to be seen whether Wisconsin will follow suit and tap into this potential source of revenue.
Original Story at www.waow.com – 2023-08-07 10:30:00