Pubdate: Sat, 18 Jan 2014
Source: Herald News, The (Fall River, MA)
Copyright: 2014 The Herald News
Contact:  http://www.heraldnews.com/
Details: http://www.mapinc.org/media/3604
Author: Charles Winokoor

POTENTIAL FINANCIAL BENEFITS FROM POT LEGALIZATION STILL UNCLEAR,
STATE AND LOCAL OFFICIALS SAY

TAUNTON - It's within the realm of possibility that Massachusetts
could follow Colorado's example by legalizing the recreational use of
marijuana. But the potential financial ramifications of such a move
are unknown.

Sixty-five percent of Bay State voters, after all, voted in 2008 to
decriminalize possession of cannabis to a civil offense, with a fine
of $100 for being caught with an ounce or less.

Four years later, voters passed a ballot initiative legalizing the use
of medical marijuana by a margin of 63 to 37 percent.

In Colorado, 55 percent of voters were in favor of their state
becoming the first in the nation to legalize and regulate the
recreational use of marijuana. Washington state residents also voted
yes, but retail outlets there won't open for business until later in
2014.

No matter whether one agrees that Colorado is sensible by allowing
residents to legally buy up to an ounce of pot from a licensed store,
the fact is the state stands to see an infusion of cash in the form of
associated tax revenue.

Colorado, in addition to its 2.9 percent standard sales tax, is
collecting an additional 25 percent from sales of recreational
marijuana. Some reports have estimated the state will collect an
additional $67 million in revenue, with nearly $28 million being
designated for building schools.

In Taunton, meanwhile, the City Council in 2013 agreed not to try
blocking the establishment of a nonprofit medical marijuana dispensary
within city limits. It instead voted that any pot dispensary, which
will be selected by the state, must operate in one of the city's
industrial zones.

Notwithstanding those developments, some Taunton and state economic
development experts say it's a bit premature to contemplate all that
potential gold at the end of the sales-tax rainbow.

"It's a little too early," said Kevin Shea, Taunton's economic and
community development director.

Shea said Massachusetts officials will need at least six months to
examine how Colorado is distributing the additional revenue to its
municipalities, which he said will be manifested in the amount of
local aid the state provides.

"It's a really tough projection to make," he said.

Michael Widmer, president of the Massachusetts Taxpayers Foundation,
said the nonprofit agency has yet to consider the potential fiscal
fringe benefits.

"We haven't looked at it at all," said Widmer, who has been president
of the foundation for for 20 years.

He said it will be "at least a year" before the foundation begins to
assess the financial data out of Colorado in regard to taxes collected
from the sales of recreational pot.

Widmer said he has yet to hear any serious banter on the topic coming
from the Statehouse. What he has heard, he said, has been "more
tongue-in-cheek than serious."

Kerrie Babin, executive director of the Taunton Area Chamber of
Commerce, confirmed in December that all three entities vying for an
opportunity to open a medical-pot dispensary in the city had joined
her organization.

Babin said she doesn't take a personal position on the ethics of
legalizing marijuana for recreational purposes. She instead reiterated
that any business enterprise deemed to be legal has a right to join
the TACC.

"Whether its gaming or medical marijuana, if it's legal, they
shouldn't be stigmatized at that point," she said.

Babin said she assumes sales of recreational cannabis in Massachusetts
would be "heavily taxed and regulated." She also said it would be
sensible that an educational component be incorporated in schools to
warn children of the pitfalls associated with getting high on pot.

"Smoke responsibly," she suggested might be an appropriate
catch-phrase.
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MAP posted-by: Jo-D