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New report says legal state marijuana sales could overtake illegal trade by year four

Virginia’s commercial marijuana market could yield between $30 million to $60 million in tax revenue in the first year, according to a new report by the state’s legislative watchdog agency.

Capital News Service

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By Sam Fowler

Virginia’s commercial marijuana market could yield between $30 million to $60 million in tax revenue in the first year, according to a new report by the state’s legislative watchdog agency.

The Joint Legislative Audit & Review Commission released a report this month that explores how the commonwealth could legalize marijuana. The agency, however, did not give its take on legalization. Shortly after the report was released Gov. Ralph Northam announced that “it’s time to legalize marijuana in Virginia.”

The state’s tax revenue could grow to between $150 million to more than $300 million by the fifth year of sales, according to JLARC. The revenue depends on the tax and demand of marijuana products.

 Most states with commercial marijuana markets tax the product between 20%-30% percent of the retail sales value, JLARC said. Colorado, one of the most mature and successful U.S. marijuana markets, currently has a tax rate close to 30%, showing that while the tax may be high, the market could still be successful, said Justin Brown, senior associate director at JLARC.

“But in reality, there’s no magic rate that you have to use, and I think that’s one thing that the other states’ experience shows,” Brown said.

Virginia decriminalized marijuana possession earlier this year. The substance is still not legal, but possessing up to an ounce results in a $25 civil penalty and no jail time. In the past, possessing up to half an ounce could lead to a $500 fine and 30 days in jail.

If the Old Dominion makes marijuana legal, it will follow in the footsteps of 15 states.

The legal marijuana market should overtake the illegal market in marijuana sales by the fourth year of legalization, JLARC said. The legal market could likely have two-thirds of sales by the fifth year of legalization. JLARC looked at the reported use rates compared to the use rates of other states to determine this figure, Brown said.

“In the first year the minority of sales will be through the legal commercial market,” Brown said. “But then over time, particularly if supply and demand works out, you’ll capture at least the majority of the full market through the legal market.”

JLARC said that if the General Assembly legalizes marijuana, the total sales tax would come out to around 25%-30%. This figure also came from the analysis of other states and how they taxed marijuana.

The industry also could create over several years between 11,000 to more than 18,000 jobs, JLARC said. Most positions would pay below Virginia’s median wage.

The revenue would cover the cost of establishing a market by year three, according to JLARC.

Northam said in a press release last week that his administration is working with lawmakers to finalize related legislation in preparation for the upcoming Virginia General Assembly session, which starts Jan. 13.

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The Capital News Service is a flagship program of VCU’s Richard T. Robertson School of Media and Culture. In the program, journalism students cover news in Richmond and across Virginia and distribute their stories, photos, and other content to more than 100 newspapers, television and radio stations, and news websites.

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Crime

Moody MS 8th-grader wins spell-off to capture pandemic edition of HCPS division-wide Spelling Bee

Ananya Nanduru clinched the 2021 title in the second round by correctly spelling “graticule,” the network of latitude and longitude lines on which a map is drawn.

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Ananya Nanduru of George H. Moody Middle School won a spell-off on January 26th to repeat as Henrico County Public Schools’ Division-wide Spelling Bee champion. The eighth-grader bested Hollie Kim, an L. Douglas Wilder Middle School sixth-grader, to win the tiebreaker, held virtually. Nanduru clinched the 2021 title in the second round by correctly spelling “graticule,” the network of latitude and longitude lines on which a map is drawn.

The winner was presented with the HCPS spelling trophy at Moody Middle School Tuesday afternoon by school division representatives, including Marcie Shea, School Board vice-chair and Tuckahoe District representative, and Amy Cashwell, superintendent. Nanduru’s is the third Moody Middle School championship in as many years. That means the trophy, which resides at the winning school, will remain on display at Moody. The award was made possible by a donation from four-time Henrico spelling champion Tejas Muthusamy, a former Moody student now at Maggie Walker Governor’s School. The Henrico Education Foundation had the trophy made.

Ordinarily, spelling champions from HCPS’ 46 elementary schools and 12 middle schools gather onstage at a middle school auditorium to determine the annual champion. Because of the pandemic, this year’s 58 school champions each took an online spelling test provided by Scripps, the media company that coordinates the national bee. Each was required to complete the test within a 15-minute window. When those results were tabulated, Nanduru and Kim had identical scores, and advanced to the virtual video spell-off.

Nanduru moves on to represent Henrico County Public Schools on March 15th in the Richmond Times-Dispatch Regional Spelling Bee, which will also be held virtually. The regional winner will advance to the Scripps National Spelling Bee, which is held in late May and televised by ESPN.

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Crime

RPD seeking public’s assistance in identifying man found dead near Bandy Field and U of R

At approximately 7:06 a.m. on Sunday, January 24, an unknown deceased male with no form of identification was found in the 6700 block of Three Chopt Road. No foul play is suspected.

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From Richmond Police:

Richmond Police detectives are asking for the public’s help in identifying a male who was found early Sunday morning.

At approximately 7:06 a.m. on Sunday, January 24, an unknown deceased male with no form of identification was found in the 6700 block of Three Chopt Road. No foul play is suspected.

The male is described as a white male in his late teens or early twenties with hazel eyes, dark hair, and a slim build. He was wearing a tan long sleeve shirt with a distinctive design on the front of the shirt, grey sweatpants, grey shoes with green on them and had a tan backpack. Photos of the clothing are attached.

Anyone with information to assist in this investigation is asked to call Major Crimes Detective N. Reese at (804) 510-4183 or Crime Stoppers at 780-1000.

Photos of the deceased man’s clothing and apparel are below.

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Crime

Arrest made in Arthur Ashe Boulevard hotel homicide that occurred in 2020

Marquise McCormick was incarcerated in Chesterfield County on unrelated charges. Last week, he was charged with first degree murder and use of a firearm in the commission of a felony in relation to the Richmond homicide.

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From Richmond Police:

Richmond Police detectives have made an arrest in last summer’s homicide on Arthur Ashe Boulevard.

Marquise McCormick was incarcerated in Chesterfield County on unrelated charges. Last week, he was charged with first degree murder and use of a firearm in the commission of a felony in relation to the Richmond homicide.

At approximately 1:43 a.m., Tuesday, June 2nd, RPD officers were called to the Rodeway Inn in the 3200 block of N. Arthur Ashe Boulevard for a report of a person shot. They quickly located a victim, Jermaine Stroman lying in a third floor hallway. He had been shot. He was pronounced dead at the scene.

Anyone with information about this homicide is asked to contact Detective G. Bailey at (804) 646-6743 or Crime Stoppers at (804) 780-1000 or www.7801000.com or the P3 smartphone app. All Crime Stoppers methods are anonymous.

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