The legalization of medical marijuana has paid significant business dividends for the states that have approved its use and the medical marijuana consulting industry, translating into millions in revenue. According to research the marijuana market will grow to $10.2 billion nationally within the next five years. In fact, Washington, a state that together with Colorado, Alaska and Oregon has legalized not only medical marijuana but also recreational use as of July 9, estimated that they would gain as much as $3 million in taxes on $12 million worth of sales by September of the same year. The state’s taxes on processor, producer and retail level is 25%.
The District of Columbia and 23 other states have all legalized the use of cannabis for medical purposes, according to the National Conference of State Legislatures (NCSL). Fourteen other states have legalized the use of cannabis in certain circumstances. Medical marijuana is used to treat a number of conditions includes Post-Traumatic Stress Disorder (PTSD).
States such as Colorado are also benefitting, having garnered $18.9 million in state taxes in the period between January and June last year, according to the state Department of Revenue. A portion of this will go to local government. The decriminalization of cannabis in Colorado also led to the creation of between 7,500 and 10,000 jobs in 2014. Estimates put the amount of tax that could be reaped from legalization in all states at over $3 billion collectively.
And there is support for such extended legalization. More than 50% of Americans surveyed supported the legalization of cannabis and more than three quarters of doctors believe that marijuana should be used for medical purposes. The business potential of marijuana is thus significant and entrepreneurs are increasingly looking at its potential. Medical marijuana consulting firms can provide advice on marijuana investment opportunities, acquiring a cannabis business license, and how to start a medical marijuana business.
