Armanino Blog
Article

Cannabis Legalization Approved in 5 Additional States

by Mike Goral
November 17, 2020

The presidential election certainly garnered most of the electorate's attention on November 4. However, the results also signaled the growing public approval of cannabis, as all five states that had some form of cannabis legalization on their ballots approved it by a significant majority of voters. The five states are:

  • Arizona – adult-use cannabis was added to existing medical use
  • Mississippi – medical use added
  • New Jersey – adult-use cannabis was added to existing medical use
  • Montana – adult-use cannabis was added to existing medical use
  • South Dakota – medical used added

These states alone are expected to generate more than $2.5 billion in sales, with total cannabis sales expected to reach $37 billion by 2024, according to Marijuana Business Daily. When the total impact is factored in, cannabis will provide an estimated $130 billion in stimulus to the U.S. economy.

The recreational market now includes 15 states, and it is moving eastward at a rapid pace. Of particular interest is cannabis legalization in New Jersey, which will add pressure to its neighboring states of New York and Pennsylvania to convince their legislatures to approve adult-use cannabis. In addition, not lost on New Jersey voters was the tax impact that adult-use cannabis can bring to offset any proposed tax increases in individual and property taxes due to loss of revenue during the COVID-19 pandemic.

Prospects for federal legalization will no doubt remain elusive, at least in the near term, since there has traditionally been some resistance to passing any cannabis bills in the U.S. Senate. However, if the two U.S. Senate seats up for grabs in the January runoff election go in favor of the Democrats, this could help efforts to pass at least some safe banking legislation within the next two years.

This industry has always been in a state of flux. We anticipate that we will continue to see rapid developments that benefit the cannabis markets over the next several years.

If you have any questions, reach out to our experts.

Stay In Touch

Sign up to stay up-to-date with the latest accounting regulations, best practices, industry news and technology insights to run your business.

Authors
Resources
Related News & Insights
Women in Life Sciences ESG
Webinar
Join us for a blooming ESG discussion and a floral arrangement workshop!

July 20, 2022 | 03:00 PM - 05:00 PM PT
Unleash Your Nonprofit’s Fundraising Cloud Strategy
Webinar
Realizing you need to replace outdated and siloed technology is step one.

July 19, 2022 | 01:00 PM - 01:30 PM PT
Why SaaS Metrics Matter Webinar Thumbnail
Webinar
Discover how collecting and reporting the right SaaS metrics can help analyze the health of your organization.

July 19, 2022 | 10:00 AM - 11:00 AM PT