Chicago Sun-Times

Six marijuana legalizati­on lessons

- @jacobsullu­m JACOB SULLUM Jacob Sullum is a senior editor at Reason magazine.

Legislator­s in New York and New Mexico voted last week to legalize recreation­al marijuana, as their counterpar­ts in New Jersey had done the previous month. The three plans, which bring the number of states that have approved legalizati­on to 17, reflect some of the lessons that policymake­rs have learned — and in some cases ignored — since Colorado became the first state to take that step in 2012.

1. Expungemen­t

Unlike the first few states to legalize marijuana, New Jersey, New York and New Mexico are simultaneo­usly trying to alleviate the damage done by prohibitio­n. All three states are creating expungemen­t programs to remove the taint of criminalit­y from people who were convicted of marijuana-related conduct that is no longer illegal.

2. Stoned driving

New Jersey, New York and New Mexico, unlike several other states with legal pot, wisely eschewed defining marijuana-impaired driving based on THC blood levels, which are not a reliable measure of intoxicati­on. All three states will continue to require additional evidence of impairment, such as erratic driving and performanc­e on sobriety tests.

3. Cannabis cafés

After the first few states legalized marijuana, dispensary customers — especially tourists — frequently had trouble finding a place where they could legally consume the pot they could now legally buy. New Jersey, New York and New Mexico address that problem by allowing marijuana use in specially licensed consumptio­n areas.

4. Home delivery

When states allow local government­s to ban dispensari­es, even buying marijuana can be difficult. Home delivery, which New Jersey, New York and New Mexico all will allow, frees cannabis consumers from the dictates of weed-unfriendly jurisdicti­ons.

5. Home cultivatio­n

Most states where marijuana is legal let recreation­al consumers grow cannabis at home to use and share with friends. New Mexico will permit home cultivatio­n as of June, so consumers won’t have to continue relying on the black market until state-licensed pot shops are up and running, which is supposed to happen by April 1, 2022.

New York, by contrast, is delaying permission for home cultivatio­n until up to 18 months after the first recreation­al dispensary opens, which could mean consumers won’t be allowed to grow marijuana until late 2023 or early 2024. New Jersey, meanwhile, is prohibitin­g homegrown marijuana altogether.

6. Taxes

New York’s long delay in allowing home cultivatio­n presumably is aimed at helping newly licensed suppliers establish themselves and displace the black market. But when it comes to taxes, New York legislator­s do not seem very keen on helping the industry — or consumers.

New York plans to tax marijuana based on THC content, but with different rates for different products: higher for concentrat­es than for flower, and higher still for edibles. A consumer who eats a square of chocolate containing 10 milligrams of THC will be taxed six times as heavily as a consumer who smokes the same dose, which does not make much sense if the aim is to reduce cannabis-related health hazards.

The THC levy may amount to a tax as high as 30%, depending on costs, THC content and product type. That’s on top of a 13% marijuana sales tax, which is in addition to general state and local sales taxes that run as high as 8.9%.

New Jersey plans to impose an excise tax ranging from less than 3% to more than 30%, depending on the average retail price per ounce. The state also will allow local government­s to collect multiple taxes from growers, manufactur­ers, wholesaler­s and retailers, with the rate capped at 2% for each transactio­n.

New Mexico’s marijuana sales tax is simple and modest by comparison: 12% initially, rising gradually to 18% by July 2030. States such as Alaska, Illinois, Maine, Massachuse­tts and Michigan tax marijuana even more lightly.

These states seem to recognize that heavy taxes make it harder for licensed retailers to compete with black-market dealers. It’s a lesson that some politician­s will have to learn all over again.

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 ?? GETTY IMAGES ?? Eliana Miss Illi, general manager of the recreation­al marijuana shop Weed World in New York City, smokes a joint last week.
GETTY IMAGES Eliana Miss Illi, general manager of the recreation­al marijuana shop Weed World in New York City, smokes a joint last week.

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