Medical marijuana tax revenue tops $2 million since sales began
As Gov. Kevin Stitt on Thursday signed into law a bill establishing an extensive medical marijuana framework in Oklahoma, reports from the state show just how much money has come in since voters approved State Question 788 last summer.
In a nutshell, nearly $20 million has been generated in licensing revenue, state and local taxes, and the SQ788- mandated 7 percent tax. And the cost of the program for the state's fiscal 2019, including start-up costs, is $5.8 million. However, several provisions of the Unity Bill will significantly add to the state's costs.
Revenue from state licensing
So far, Oklahoma's medical marijuana industry has generated $10.2 million in licensing fees from cannabis businesses, and about $6 million in licensing fees from patient license applications.
Tax revenue since sales began
Medical marijuana dispensary sales (totaling $11.5 million for Jan.-Feb. 2019) have generated more than $2 million in tax revenue through February 2019: $890,339 from the 7 percent gross receipts tax and another $1,272,060 from the 4.5 percent state sales tax in addition to other local sales taxes.
Number of licenses issued
As of March 11, the Oklahoma Medical Marijuana Authority has licensed 63,647 patients, 412 caregivers, 1,109 dispensaries, 1,972 growers and 553 processors.
Unity Bill
House Bill 2612, the Oklahoma Medical Marijuana and Patient Protection Act, commonly called the “Unity Bill,” is expected to cost nearly $10 million in its first year. It was created after multiple meetings and presentations before a bipartisan medical marijuana working group. (Rep. Jon Echols, co-chair, pictured.)
Among the most controversial aspects of the measure is a provision allowing employers in “safety-sensitive” fields to inquire whether employees have medical marijuana licenses. These positions include firefighting, handling hazardous materials, and operating motor vehicles and heavy machinery.
The measure grants express rule-making power to the Oklahoma Medical Marijuana Authority, part of the state Health Department, and allows it to employ its own investigators to look into alleged violations.
Trailer bills - SB 307
SB 307 would update the section on state taxes, adding that local/county sales taxes may be levied, and removes language pertaining to the specific percentages of revenue surpluses that go toward common education and substance abuse treatment programs. Multiple bills address advertising and packaging so as not to make medical marijuana attractive or accessible to children. JOHN CLANTON/Tulsa World file
Trailer bills - SB 305
SB 305 would update the section regarding employee protections for those with patient licenses, adding safety-sensitive jobs (including handling food) and clarifying the actions employers can take regarding positive drug tests.
Trailer bills - physicians approved
Multiple bills would address which physicians may sign a medical marijuana recommendation. The Tulsa Higher Care medical clinic is pictured, the first doctor to take appointments in the city after the approval of SQ788.