Delaware State Auditor Kathy McGuiness released a report this week that shows that the state could raise up to $43 million per year in new tax revenue with the legalization and regulation of recreational marijuana for adults. The special report, titled “Millions in Revenue Anticipated from Legalizing Marijuana in Delaware,” was released by McGuiness’ office on Monday.
“Forty-three million dollars in state tax revenue would be a boon to Delaware’s coffers,” McGuiness said in a press release. “That money could be used to plug budget holes in the short term and would continue to provide revenue for all kinds of important initiatives in the long term.”
The report also notes that legalizing the recreational use of cannabis by adults 21 and older would allow for the formation of new businesses that would create more than 1,000 jobs within five years. The auditor’s office used publicly available data to estimate that legalizing recreational marijuana would create an industry valued at $215 million dollars annually. The report assumes a “reasonable” excise tax of 20% to arrive at the $43 million projection for state tax revenue.
McGuiness noted in her statement that most of the state’s residents support cannabis policy reform and that