How Marijuana Legalization Changed U.S. Cities
Recent studies have shown that tax revenues from cannabis sales in Washington and Colorado have contributed to the development of city infrastructure, agriculture, and educational programs. These two states were chosen for the research because they were among the first to legalize recreational cannabis. Now, U.S. policymakers are considering legalization in other states, focusing on the financial benefits and potential for growth.
In the past year alone, tax revenues from marijuana sales in legalized states exceeded two billion dollars. Analysts predict that by 2030, this figure could rise to nearly 12 billion dollars. These numbers are expected to surpass the tax revenues collected from alcohol sales. Many states where cannabis is legal have already seen the benefits, such as funding for new municipal projects, support for local businesses, subsidies for low-income renters, improvements to public schools, water supply systems, and other important infrastructure projects.
Colorado’s Experience
In Colorado, a portion of the cannabis sales tax goes directly to the State Department of Education fund. This money is used to renovate existing schools and build new educational facilities. Some of the funds are also allocated to grants for schools. Additionally, revenue from marijuana sales supports agriculture, including further cultivation of cannabis. Colorado authorities see this as an effective way to develop the agricultural economy. The remaining funds are used to maintain public infrastructure, improve public transportation, and finance small businesses that create new jobs.
Other States’ Results
Other states that have recently entered the cannabis industry have also reported significant benefits from marijuana sales. In Maryland, where only medical cannabis is permitted, revenue from its sales has sparked new developments in the industrial sector.
A study conducted in Illinois found that the legalization of recreational cannabis indirectly influenced an increase in real estate prices. Thanks to tax revenues from marijuana sales, public safety in the state improved, which in turn boosted homebuyer interest in certain neighborhoods. The presence of dispensaries also became a key factor when choosing where to buy a home. According to the study, for every additional million dollars in tax revenue from cannabis sales, home values increased by nearly $500.
Looking Ahead
Currently, tax revenues from marijuana sales make up only a small percentage of state budgets. However, just ten years ago, this income didn’t exist at all. The conclusions drawn by researchers may influence other states to move forward with legalizing recreational cannabis in the near future.