According to the 2018 Cannabis Price Index, conducted in 120 international cities, marijuana is the most expensive in Tokyo and least expensive in Quito. The price index also calculates how much tax revenue a city could gain from legalization.
For the study, Seedo (an automatic cultivator device) began first by selecting 120 cities across the world, including locations where cannabis is currently legal, illegal and partially legal, and where marijuana consumption data is available. Then, they looked into the price of cannabis per gram in each city. To calculate how much potential tax a city could make through legalization, researchers investigated how much tax is paid on the most popular brand of cigarettes, “as this offers the closest comparison”. They then looked at what percentage marijuana is currently taxed in cities where it’s already legalized in the U.S.
“This study has revealed some incredible insights into the kind of tax revenue that legalizing weed could generate.” says Uri Zeevi, CMO at Seedo. “Take New York City for instance, which has the highest consumption level in the study at 77.44 metric tons of cannabis per year. If they taxed marijuana at the average U.S. cannabis tax level, the city could make $156.4 million in potential tax revenue per year. This is equivalent to providing nearly three months worth of free school meals to every single public school kid in New York City.”
Credit: The Dope Blog