<div dir="ltr"><div>Price competition between states might sometimes result in increases in tax revenue for some adjacent states offering legalized cannabis, as has happened to Idaho's alcohol tax revenues after Washington State turned hard alcohol sales over to the private sector. </div><div><br></div><div>Excuse my pedantry, but with the level of state government taxation of alcohol or cannabis, these products are not functioning in a truly price competitive "free market" system. Washington increased alcohol taxation in the 2012 privatization scheme, thus the cross border sales in Idaho of alcohol to those living in Washington avoiding Washington's higher prices.</div><div><br></div><div>A few references below:</div><div><br></div><div><font size="6"><a href="https://www.legislature.idaho.gov/budget/publications/FiscalFacts/current/FF.pdf">https://www.legislature.idaho.gov/budget/publications/FiscalFacts/current/FF.pdf</a><br></font></div><div><p><font color="#b02a30" face="AGaramondPro-Regular"><font color="#b02a30" face="AGaramondPro-Regular" size="6">Revenues & Appropriations</font></font></p></div><div><b><font face="CenturyGothic-Bold"><font face="CenturyGothic-Bold" size="6"><p>FY 2012 FY 2013 FY 2014 FY 2015</p></font></font></b><p><font size="4"><font size="6"><font face="CenturyGothic"><font face="CenturyGothic">Liquor Profits </font></font><font face="CenturyGothic"><font face="CenturyGothic">$17.2 $20.9 $24.2 $25.5</font></font></font></font></p></div><div>------------------------------------------<br></div><div><a href="http://www.spokesman.com/blogs/boise/2016/feb/05/idaho-liquor-division-still-making-washington-buyers/">http://www.spokesman.com/blogs/boise/2016/feb/05/idaho-liquor-division-still-making-washington-buyers/</a></div><div><br></div><div>FRIDAY, FEB. 5, 2016, 9:58 A.M.<h1>Idaho Liquor Division still making $$ off Washington buyers</h1><p><strong>By Betsy Z. Russell</strong></p></div><div>Idaho’s state Liquor Division reports that its sales continue to see a big boost thanks to Washington having privatized liquor in 2012, driving up prices there and prompting more near-border customers to buy their booze across the state line in Idaho. Idaho Liquor Division sales were $143.9 million in fiscal year 2011; they hit $169 million in 2014, $179 million in 2015 and are projected to hit $185.7 million in the current year, fiscal year 2016. Next year, sales are forecast at $193.3 million, up 4.1 percent from this year.</div><div>---------------------------------------</div><div><font size="4">Ditto for Oregon:</font></div><div><font size="4"></font><a href="http://www.opb.org/news/article/npr-washington-liquor-privatization-continues-to-drive-sales-to-oregon-idaho/">http://www.opb.org/news/article/npr-washington-liquor-privatization-continues-to-drive-sales-to-oregon-idaho/</a><br></div><div><h1>Washington Liquor Privatization Drives Sales To Oregon, Idaho</h1><p class="gmail-byline"> by <a href="http://www.opb.org/contributor/tom-banse/" rel="author"><strong><font color="#000080">Tom Banse</font></strong></a> Feb. 8, 2016 5:45 p.m</p><p>The privatization of retail liquor sales in Washington state has delivered a sustained boost to the state liquor divisions in neighboring Idaho and Oregon.</p><p></p><p>Private retailers took over liquor sales in Washington in 2012 following passage of a ballot measure, notably backed by Costco. An analysis by the Alcohol Research Group at the Public Health Institute in Emeryville, California, published last year found that <a href="http://alcalc.oxfordjournals.org/content/50/6/654" target="_blank"><font color="#000080">liquor prices rose by an average of 15.5 percent after privatization</font></a> but vary greatly by store type. The price increases were largely due to added state taxes.</p></div><div>---------------------------------------<br></div><div>Vision2020 Post: Ted Moffett<br></div><div class="gmail_extra"><br><div class="gmail_quote">On Wed, Sep 21, 2016 at 11:22 PM, Kenneth Marcy <span dir="ltr"><<a href="mailto:kmmos1@frontier.com" target="_blank">kmmos1@frontier.com</a>></span> wrote:</div><div class="gmail_quote"><br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;padding-left:1ex;border-left-color:rgb(204,204,204);border-left-width:1px;border-left-style:solid">
<div bgcolor="#FFFFFF"><span>
On 09/19/2016 09:44 PM, Ron Force wrote:<br>
<blockquote type="cite">
<div dir="ltr">
<div style="font-size:small">Just to keep
things in perspective, $1 billion is 0.6% of the California
state budget. "Sin" taxes and lotteries rarely amount to much
in the overall scheme of things.<br>
</div>
</div>
</blockquote>
<br></span>
Without wishing to be even more of a spoil-sport, I think it ought
to be mentioned that as many more states join the ranks of those
allowing legal sale of marijuana, and, indeed, as an interstate
market for legal marijuana sales becomes a reality, an economic
phenomenon called price competition is likely to rear its
profit-squeezing head, with the results that not only will sales
revenues be stabilized, and, in some cases, actually reduced, but
also the revenues available to various governmental organizations
will also be moderated toward more realistic, and less fancifully
projected, numerical results. <br>
<br>
<br>
Ken<span><br>
<br>
<br>
<blockquote type="cite">
<div class="gmail_extra"><br>
<div class="gmail_quote">On Mon, Sep 19, 2016 at 7:11 PM, Tom
Hansen <span dir="ltr"><<a href="mailto:thansen@moscow.com" target="_blank">thansen@moscow.com</a>></span>
wrote:<br>
<blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;padding-left:1ex;border-left-color:rgb(204,204,204);border-left-width:1px;border-left-style:solid">
<div dir="auto">
<div>Courtesy of the <i>Cannabist</i> (Denver, Colorado)
at:</div>
<div><br>
</div>
<div><a href="http://www.thecannabist.co/2016/09/16/california-marijuana-tax-where-would-money-go/63307/" target="_blank">http://www.thecannabist.co/201<wbr>6/09/16/california-marijuana-<wbr>tax-where-would-money-go/<wbr>63307/</a></div>
</div>
</blockquote>
</div>
</div>
</blockquote>
<br>
<br>
</span></div>
<br></blockquote><br></div></div>