EUGENE, OR – With the legalization of marijuana, it seems that sales and other interest-earning associated with pot are now taxable. This gives the government a huge push forward and an estimated increase in the budget allocation.
Political leaders even used the projected increase in meager budget as a basis for winning the fight in the legalization of marijuana. They said that the regulation could help in monitoring the sales. Aside from that, it also assists in the movement of cannabis inside the country imposing a tax and using the revenue in a much-wanted budget allocation need.
It seems that everything is coming in perfect order as they can finally fill in the huge budget gap before the taxes were imposed on pots, but the problem persists.
In Oregon, they thought that the tax money collected from the legal sale of marijuana could fill a $1.6 billion budget gap. However, even though all the resources from the pot sale have been exhausted, they are still looking for a budget gap as the revenue brought in only $75 million since 2016.
The sales revenue from the marijuana sale in 2016 is still a far cry from the targeted $1.6 billion. Although, some lawmakers are quick to defend that the $75 million is still a huge amount and could close to an advantage in some government projects.
Other people can’t help but point out the flaws of the side of the government. They think that, after the legalization of cannabis, the government failed to create a policy that will clearly indicate the uses of the revenue placed by the sale of marijuana. They said that it is a quirk in the state law in the government of legal marijuana.
Some of the tax revenues still sit in the state account, waiting for a proper marijuana program to be set up. This will ensure that the revenue will be distributed to the intended programs where marijuana sales tax revenue was fought to be designated in the first place such as schools and police agencies.
Unless a law is established for a proper distribution of these funds, the administration will continue to face massive budget deficits. Nevertheless, the marijuana sales revenue will not help to fill the gap.