If marijuana made legal in Texas, it would generate billions of dollars in tax revenue and create thousands of jobs, according to a new economic analysis.
Texas has been resistance to change their policy on cannabis, but the new statistics from Vicente Sederberg LLP makes it quite tempting.
The study finds that legal cannabis sales in Texas could reach $2.7 billion in cannabis sales every year, given the current adult-use marijuana market. If Texas followed Colorado’s tax model, it would earn $1.1 billion in cannabis tax dollars every two years.
The analysis also estimates that roughly 20,000-40,000 jobs would be created in the legal marijuana industry. Legalization would also create more opportunities for contractors and construction firms, electrical and water service providers, HVAC manufacturers and installers, processing equipment producers and retailers, and other professionals.
The report states, “We also expect it would bolster the hospitality industry, which would benefit communities that rely on tourism; especially those that have recently been severely impacted by the novel coronavirus, such as San Antonio, Houston, and Corpus Christi.”
In addition to tax revenue from cannabis sales, Texas could additionally generate $10 million annually if business licensing fees are set at $5,000.
“In addition to generating revenue and creating jobs, regulating cannabis for adult use would also realize significant criminal justice savings,” the report says, adding that Texas would save an estimated $311 million per year in criminal justice resources if marijuana was legalized.
Shawn Hauser, a partner at Vicente Sederberg, said in a press release, “States across the country are seeing the benefits of legalizing and regulating cannabis. It is inspiring lawmakers in prohibition states to reexamine the efficacy and costs of their current policies and take a closer look at the alternatives.”