Pennsylvania Gov. Calls for Legalizing Adult-Use Cannabis

Pennsylvania Governor Josh Shapiro has called for the legalization of adult-use cannabis, highlighting potential revenue losses to neighboring states with legal cannabis and proposing a 20% tax to generate significant tax revenues in his budget proposal.

Full story after the jump.

Pennsylvania Gov. Josh Shapiro (D) called this week for the legalization of adult-use cannabis after suggesting the state is losing out on potential cannabis revenues to neighboring states that have already legalized, the Philadelphia Inquirer reports.

The governor signaled his priority on the issue on Tuesday by including legalization in his $48.3 billion budget proposal. An administration official predicted that with a 20% tax rate on regulated cannabis products, the state could generate $14.8 million in tax revenue during the first year, increasing to $76 million in its second, $160 million in its third, and $230 million in its fourth year of a regulated adult-use cannabis market, according to the report.

Pennsylvania‘s neighbors in New York, New Jersey, Delaware, Maryland, and Ohio have already legalized adult-use cannabis and Shapiro argues that the state is falling behind.

“Let’s stop hamstringing ourselves and start competing.” — Shapiro, via the Philadelphia Inquirer

The state’s Republican leadership, which controls the state Senate, has historically opposed significant cannabis reforms but this week suggested they may be willing the consider the proposal, the report said.

“We also need to understand where the governor is coming from,” said Senate Majority Leader Joe Pittman (R).

A Pennsylvania poll found last July that just over half of the state’s voters support legalizing adult-use cannabis, slightly down from a previous poll which placed support at 56%.

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Industry perspectives on this story:

“The Pennsylvania Cannabis Coalition commends Governor Shapiro for his leadership on the legalization of adult-use cannabis. With the inclusion of adult-use cannabis in his budget, Governor Shapiro formally added his voice to the millions of Pennsylvanians who know it is time for the Commonwealth to join 24 other states to regulate and tax cannabis for use by adults 21 and over. The legislature must act quickly to ensure the Governor’s priority is enacted and Pennsylvania remains competitive in the cannabis sector. Governor Shapiro’s leadership on this issue will deliver more than just revenue to the Commonwealth. The establishment of a well-regulated adult-use cannabis market built on the experience and infrastructure of the current medical marijuana program will add thousands of jobs, reap millions of dollars in investments for Pennsylvania, and stop the revenue bleed to neighboring adult-use states. The Pennsylvania Cannabis Coalition looks forward to working with the Shapiro administration, key advocates in the Pennsylvania Legislature, and stakeholders to craft a regulatory system that legalizes the sale of recreational cannabis through a well-regulated system that assures safe products for adult consumers, reduces the impact of the illicit market, rights the wrongs of cannabis prohibition and allows the Commonwealth to quickly experience revenue.”

Meredith Buettner - Executive Director, Pennsylvania Cannabis Coalition

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