- Medical Cannabis Bill Could Create Budget Boon for Louisiana
Tax Revenue Potential Exceeds $13 million
Baton Rouge, LA, March 1, 2016 – A Louisiana House bill could provide some much needed relief for Louisiana’s budget deficit. The bill proposes a four percent sales and use tax on the quarterly gross sales of any licensed medical marijuana production facility. Under current Louisiana law, prescription medications, including medical marijuana, are tax exempt.
According to a recent study by the Marijuana Policy Group (MPG), the four percent tax on medical cannabis in Louisiana has an upper revenue estimate of $13.36 million annually. This estimate assumes that cannabis can be legally prescribed for a wider range of medical conditions, as seen in the vast majority of states that have legalized marijuana for legitimate medical use.
Rep. Tanner Magee said, “Medical marijuana will dramatically improve the lives of many in Louisiana who suffer from debilitating illnesses. At a time when Louisiana is in a historic budget shortfall implementing a tax on medical marijuana should be an easy decision.”
In June, 2015, Governor Jindal signed into law SB 143, which makes legal the limited use of medical cannabis for glaucoma, cancer patients receiving chemotherapy and those with spastic quadriplegia. A tax on medical marijuana restricted to these three conditions would net around $500,000 in annual tax revenue, according to the MPG study.
Jesse McCormick, spokesperson for the Louisiana Cannabis Association said, “We are excited that Rep. Magee filed HB127. It is only logical to look to something that 27 other states are doing to generate revenue.”
Click here to download a PDF of the bill: