If passed, what revenues from Issue 4 could go to
JONESBORO, Ark. (KAIT) - Marijuana is on the minds of many Arkansans as we inch closer to the November elections where citizens will have the chance to legalize the drug for recreational use, but many are starting to wonder where the money from drug might go.
The amendment says if passed a portion of 10% of the revenues will go to law enforcement and the University of Arkansas Medical Center for cancer research.
Scott Hardin with the Arkansas Department of Finance and Administration said it is tough to tell how much money that 10% might be especially when they look back on their medical marijuana projections.
“We projected that there would be 40 to 50 thousand people that would ultimately obtain patient cards when the market was fully mature,” Hardin said. “Well as of today there are 92,000 people with patient cards, so it is certainly not an exact science.”
Hardin said many medical card holders have wondered about the point of having it if the amendment is passed, but he says there would be a financial benefit for those holders.
“The incentive to keep your patient card is the recreation will be taxed at 16% on a purchase, so if you buy $100 worth of product you’re going to pay $16.50 in state taxes,” Hardin said. “While medical holders would not have to pay a dime.”
Hardin said the state has not completed its projections but Responsible Growth Arkansas Projects $460 million in revenue.
“It is still just too early to tell,” Hardin said. “We have 92,000 people with medical cards, and it is just so hard to think of how many more people would add on to that number because anyone over 21 would be able to purchase it.”
If the Responsible Growth proposal passes, there will be 120 dispensaries that could open up as soon as March 2023.
Issue 4 will be on the November ballot.
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