Marijuana legalization looks like a ray of hope for many US states that need to recover their economic losses. The COVID-19 pandemic has taken a toll on most of the industries, which impacted the economy. Currently, marijuana is the only sector that has seen robust sales due to continued demand. Earlier, Texas said that marijuana legalization could help it recover the economic losses from the crisis. Now, New Mexico feels the same.
New Mexico thinks that marijuana legalization can bring economic relief
New Mexico has been trying to legalize marijuana since last year. The state even passed a bill last year to make recreational cannabis legal. However, the Senate didn’t pass the bill. As a result, hopes crashed in the state. The state attempted to pass a bill in January 2020 but a key Senate subcommittee voted against the legalization bill. The governor has strong support for legalization and intends to bring the bill back in 2021.
Recently, Governor Michelle Lujan Grisham suggested that marijuana legalization might help the state recover from the economic crisis. A Marijuana Moment article reported the governor supports marijuana legalization as an option to generate tax revenue. The topic of legalization will be taken up in an upcoming special session. The session will focus on how to generate tax revenue to offset financial challenges amid the pandemic.
Governor Grisham said, “The projections are nearly $100 million of recurring revenue into the budget from cannabis legalization.” She also pointed out that there’s immense support for recreational marijuana legalization from New Mexico’s residents. After a Senate subcommittee rejected the bill this year, the governor thinks that voters should decide on a ballot.
Cannabis legalization could be beneficial
Governor Grisham thinks that marijuana is a good option to help New Mexico recover from the economic losses amid COVID-19. There have been increased sales and tax revenues from US states that have legalized cannabis. The pandemic hasn’t stopped many US states with their legalization attempts. Nebraska and Montana implemented new strategies to continue their legalization campaigns. Texas also favors marijuana legalization. Notably, most sectors have seen a downfall amid the crisis. Industry trade groups think that Texas could receive up to $1 billion in additional sales tax revenue from legalization.
Cannabis sales have skyrocketed amid the pandemic, which benefits the states and the cannabis companies that have struggled this year. Higher sales boosted US cannabis companies’ revenue growth this year. Recently, Green Thumb Industries, Cresco Labs, Curaleaf, and MedMen had a drastic increase in their revenue growth. Meanwhile, Canopy Growth reported disappointing numbers in the fourth quarter of fiscal 2020.
In May, Canopy Growth (NYSE:CGC)(TSE:WEED), Green Thumb Industries (OTCMKTS:GTBIF), Cresco Labs (OTCMKTS:CRLBF), Curaleaf, and MedMen (OTCMKTS:MMNFF) have gained 14%, 50%, 37%, 34%, and 35%, respectively.
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