In an attempt to solve the budget issues of California, the idea of legalization of marijuana has entered the conscious of the mainstream voter. Come November, voters will get a chance to let their voices be heard on the issue by stating where they stand on Proposition 19. The idea behind legalizing marijuana is two fold; the first is to increase taxation and reduce law enforcement costs leading to higher state revenue and the second is to make an effort on regulating the amount of marijuana consumption in the state.

Since no other state has ever legalized the production and distribution of marijuana, it is difficult to predict the exact outcome of state wide legalization. However, certain assumptions can definitely be made.

The authorization of the sale of marijuana should bring prices down to $50 per ounce as compared to the current price of $375 per ounce. Even with lowered prices, the state stands to take in a huge revenue windfall through taxation. The estimated figures, suggest a profit of about $1.4 billion annually. This figure is variable and the actual revenues could be much higher or even lower. But any shortfall in revenue can be easily made up for through marijuana tourism.

The legalization of marijuana for recreational use will put the state on par with Amsterdam where marijuana trade is perfectly legal and provides a massive boost to tourism.  Legalization will encourage more tourist visits as marijuana smokers and growing enthusiasts will flock to California.  

The Emerald Triangle region of Mendocino, Trinity, and Humboldt counties can be to marijuana what the Napa Valley is to wine.  Humboldt County, already the home of California’s thriving, marijuana tourism industry, is anticipating the creation of some 50,000 tourism jobs should marijuana become legit. They could benefit from tourism and new businesses, such as coffee shops and merchandising. According to the Wine Institute, the 2006 economic impact of California’s wine industry within the state alone was $52 billion.  The wine industry created over 300,000 full time jobs and paid over $10 billion in wages in California. With over $2 billion in tourism expenditures.  

The National Organization of the Reform of Marijuana Laws (NORML) believes that the industries built underneath a legal marijuana market could be between $8-$13 billion with 36,000 to 58,000 jobs, and $1.2-$1.7 billion in legal wages, which would generate additional income and business taxes for the state.

The numbers clearly suggest that through legalization, California is in a prime position to not only be the premier producer of marijuana, but also a first class destination for marijuana smokers, packagers, and distributors. The opportunity for the state is tremendous and is something that the voters should not pass on!