Aug 24, 2024, 4:33 AM
Aug 23, 2024, 10:22 PM

North Dakota Lawmakers Discuss Marijuana Legalization Impact

Highlights
  • North Dakota lawmakers are grappling with estimating the full financial consequences of legalizing recreational marijuana.
  • The uncertainty lies in the potential impact on sales tax revenue and overall costs.
  • The decision will be left to voters during the upcoming November ballot.
Story

BISMARCK, N.D. (AP) — As North Dakota prepares for a pivotal vote on legalizing recreational marijuana this November, lawmakers are grappling with the financial implications of the proposed measure. A legislative panel convened to discuss potential sales tax revenues and the broader costs associated with legalization, including social impacts and additional requests from state agencies that the measure does not mandate. State Tax Commissioner Brian Kroshus provided a speculative estimate of $7.281 million in sales tax revenue every two years, based on a 5% sales tax rate. In contrast, Steve Bakken, leader of the ballot initiative, presented higher projections, suggesting annual revenues could average $19.46 million, with a low estimate of $7.65 million. Ultimately, the panel settled on a revenue estimate of $10.3 million, alongside $8.3 million in expenditures and an unspecified amount for behavioral health and social impacts. Concerns were raised regarding specific expenditures, particularly a one-time $4 million request from the state Highway Patrol for oral fluid screening devices. Highway Patrol Maj. Tom Iverson indicated that the agency anticipates increased encounters with marijuana usage on the roads if the measure passes. Some lawmakers, including Republican Sen. Kyle Davison, criticized the $4 million estimate as excessive, while others, like Rep. Ben Koppelman, urged for a balanced approach in the discussion. With 24 states having already legalized recreational marijuana, North Dakota's voters face a crucial decision, especially after rejecting similar measures in 2018 and 2022.

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