OKLAHOMA CITY – In three and a half years, medical marijuana has grown to a multibillion-dollar industry in this state.
Over a 41-month period the 7% state excise tax on purchases of medical marijuana products generated a little over $156 million, which translated into $2.22 billion in sales. State and local sales taxes on those purchases produced more than $198 million during that period.
A law enacted last year, Senate Bill 229, spells out how the receipts from the 7% MMJ tax will be disbursed.
Ÿ 59.23% of the first $65 million in revenue (or $38,499,500) will be apportioned to the State Public Common School Building Equalization Fund, which is also known as the Redbud School Funding Program for disadvantaged public and charter schools.
Ÿ 34.62% of the first $65 million (or $22,503,000) will be earmarked to underwrite operations of the Oklahoma Medical Marijuana Authority.
Ÿ 6.15% of the first $65 million (or $3,997,500) will be allocated to the State Health Department for drug and alcohol rehabilitation programs.
Ÿ Any MMJ tax collections above $65 million will be deposited in the state’s General Revenue Fund. The excise tax produced $66.17 million last year.
A related measure, Senate Bill 1033, authorizes the Oklahoma Tax Commission to keep 1.5% of the proceeds from the 7% MMJ tax as a handling fee for collecting the tax and enforcing the law.