The regulation and taxation of marijuana for New York City residents age 21 and over would yield an estimated $431 million in annual savings and revenue, according to a report released this week by the New York City Comptroller’s Office. The mission of the Comptroller’s Office is to ensure the financial health of New York City by advising the Mayor, the City Council, and the public of the City’s financial condition.

The report, entitled “Regulating and Taxing Marijuana: The Fiscal Impact on NYC,” estimates that regulating and taxing the commercial production and retail sales of cannabis to adults would yield an estimated $400 million annually. This figure is based on existing estimates regarding cannabis’ present market price and demand in New York City, as well as by calculating the imposition of an excise tax (on commercial production) and sales tax (on retail sales).

Authors further estimate that $31 million dollars would be saved annually in eliminating citywide misdemeanor marijuana possession arrests [NY State Penal Law 221.10 — possession of any amount of cannabis in public view], which in recent years have totaled approximately 50,000 arrests per year — largely as a result of law enforcement’s aggressive use of ‘stop-and-frisk’ tactics. Persons arrested are often under age 25 and disproportionately are those of color. Combined, blacks and Hispanics make up 45 percent of marijuana users in New York City, but account for 86 percent of possession arrests, the Comptroller’s report found.

The Office did not attempt to quantify the broader economic impacts of legalization, including the costs of lost time, work, and other opportunities currently imposed on those arrested. The report’s authors also acknowledged that they did not attempt to quantify the costs of incarceration, which are largely borne by the state, or other secondary fiscal impacts of legalization, such as the positive or negative effects on public health spending.

Following the release of the study, City Comptroller and Mayoral candidate John Liu spoke out in favor of legalizing the consumption of cannabis by adults, stating: “New York City’s misguided war on marijuana has failed, and its enforcement has damaged far too many lives, especially in minority communities. It’s time for us to implement a responsible alternative. Regulating marijuana would keep thousands of New Yorkers out of the criminal justice system, offer relief to those suffering from a wide range of painful medical conditions, and make our streets safer by sapping the dangerous underground market that targets our children.”

A summary of the report is available online from the NYC Comptroller’s Office here. The full report is available here.

Article republished from NORML