As Oklahoma prepares to collect taxes on marijuana, a new study from the Pew Charitable Trusts urges caution when relying too much on that money.
The report released Thursday highlights the history of “sin taxes,” or revenue collected from things like marijuana, gambling, tobacco and alcohol.
“Sin taxes can provide short-term revenue boosts, but because of a combination of factors, they may also drive budget challenges in the long term,” said Mary Murphy, project director for Pew’s state fiscal policy division. “And relied on for ongoing commitments, (they) can create structural budget challenges.”
State Question 788 set the tax on medical marijuana at 7 percent, which will be collected at the retail level based on the amount of money a customer spends. Other states tax product at the warehouse, and others set levies based on potency or the quantity of marijuana sold.