Report: Legal marijuana boosts government revenue a little - Western Mass News - WGGB/WSHM

Report: Legal marijuana boosts government revenue a little

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(Image Courtesy: MGN Online) (Image Courtesy: MGN Online)

By GEOFF MULVIHILL
Associated Press

A new report finds that legalizing and taxing marijuana boosts revenue for state and local governments, but not by much.

The credit rating agency Moody's Investor Service says in a study released Tuesday that legalizing recreational use of marijuana brings governments more money than it costs.

Despite high taxes on the drug, it accounts for just a small portion of government budgets. A marijuana tax brings in the equivalent of about 2 percent of the state budget in Colorado, for instance.

Moody's described the revenue effect as minimal on local governments in states with legalized pot.

Twenty-nine states now allow marijuana for either medicinal or recreational uses.

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