OKLAHOMA CITY – Residents of the conservative, “red” state of Oklahoma – the state that has one of the highest, if not the highest, rates of incarceration of men and women alike – have spent $1.6 billion on medical marijuana since voters legalized it in 2018.
The 7% state tax on medical marijuana has produced $115.3 million, and sales of MMJ products have generated another $145.5 million for the state and for municipalities, producing a grand total of more than one-quarter of a billion dollars in tax receipts in 33 months.
The MMJ tax generated a record $6,235,995 in April, and June produced the second highest amount: $6,005,615.
The tax has become a major revenue stream for the state and for cities and towns.
During the last three months of 2018 the MMJ tax, combined with state and local sales taxes, generated almost $242,000. Those levies combined multiplied to $54.7 million in 2019, and more than doubled in 2020, to $127.8 million. If the current pace continues, tax receipts from medical marijuana purchases this year will eclipse last year’s figures.
A new law the Legislature passed and Governor Stitt signed in May, Senate Bill 229, spells out how the receipts from the 7% MMJ tax will be disbursed.
• 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.
• 34.62% of the first $65 million (or $22,503,000) will be earmarked to underwrite operations of the Oklahoma Medical Marijuana Authority.
• 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.
• Any MMJ tax collections above $65 million will be deposited in the state’s General Revenue Fund.
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.