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Published on Friday, July 7, 2017

New budget imposes restrictions on local marijuana revenue

Local government marijuana mitigation revenues were reduced from $30 million to $12 million for cities and counties in the 2017-19 biennium. This comes at a time when a new formula for distributing marijuana revenues, per a 2015 law, comes into effect: 30% of the distribution will be based on jurisdictions’ marijuana retailer sales and 70% will be based on a per capita basis (this only includes jurisdictions that allow marijuana businesses). Due to these factors, the amounts of local marijuana distributions are, at this time, difficult to project. AWC will continue to work with the Liquor and Cannabis Board to provide greater clarity for our members.

The budget also provides that if the Feb. 2018 forecast of general fund revenues exceeds the June 2017 general fund forecast by over $18 million, local governments may receive an additional $18 million in the 2017-19 biennium. However, in all biennia following 2017-19, the budget imposes a $6 million per fiscal year limit on marijuana distributions.

Categories: Marijuana