Exploring the Economic Impact of Marijuana in Oklahoma: An Overview

Exploring the Economic Impact of Marijuana in Oklahoma: An Overview

Since the legalization of medical marijuana in Oklahoma in 2018, the state has experienced a significant economic impact. The burgeoning industry has not only created new jobs but also generated substantial tax revenue, contributing to the state’s economy in a big way. This article explores the economic impact of marijuana in Oklahoma, providing an overview of the demand, taxes, revenue, and the biggest private marijuana companies in the state.

Demand for Medical Marijuana in Oklahoma

Since the legalization of medical marijuana, Oklahoma has seen a surge in demand. According to the Oklahoma Medical Marijuana Authority (OMMA), as of December 2021, there were over 365,000 active patient, caregiver, and research licenses. This high demand has led to the establishment of numerous dispensaries across the state, further stimulating the local economy.

Marijuana Taxes in Oklahoma

In Oklahoma, medical marijuana is subject to a state tax of 7%, in addition to the standard sales tax of 4.5%. This tax is collected by the Oklahoma Tax Commission. The revenue generated from these taxes is used to fund the regulatory office and any excess is directed towards the state’s general fund.

Revenue from Marijuana in Oklahoma

The revenue generated from the medical marijuana industry in Oklahoma has been substantial. In the fiscal year 2020, the state collected more than $70 million in taxes from medical marijuana sales. This revenue has been a significant boost to the state’s economy.

In 2022, Oklahoma collected approximately $54.7 million from the 7% excise tax on medical cannabis sales, and an additional $70.7 million from state and local sales taxes, bringing the total to around $125.4 million.

In 2023, the state collected about $51 million from the excise tax and $66.6 million from state and local sales taxes, totaling approximately $117.6 million​ (Welcome to Oklahoma’s Official Web Site)​​ (Cannabis Biz Executive)​​ (Sales Tax Handbook)​.

This revenue is significant, contributing to various state funds, including education and the Oklahoma Medical Marijuana Authority’s operational costs.

Biggest Private Marijuana Companies in Oklahoma

Several private companies have capitalized on the growing demand for medical marijuana in Oklahoma. Some of the biggest include Green Leaf Supply Co, Seed Cannabis Co, and The Peak Dispensary. These companies have played a crucial role in meeting the demand for medical marijuana, contributing to job creation and economic growth in the state.

In conclusion, the legalization of medical marijuana in Oklahoma has had a significant economic impact. The industry has created jobs, generated substantial tax revenue, and led to the growth of numerous private companies. As the industry continues to grow, it is expected to contribute even more to the state’s economy.

What is the economic demand for marijuana in Oklahoma?

The economic demand for marijuana in Oklahoma has been on a steady rise since the state legalized medical marijuana in 2018. The state’s medical marijuana market has quickly become one of the largest in the nation, with over 365,000 patients registered as of 2021. This represents nearly 10% of the state’s population, indicating a high demand for medical marijuana in Oklahoma.

Increasing Patient Registrations

According to the Oklahoma Medical Marijuana Authority (OMMA), the number of patient registrations has been increasing rapidly. This surge in patient registrations is a clear indicator of the growing demand for medical marijuana in the state. The OMMA also reports that there are over 10,000 licensed businesses in the state, including dispensaries, growers, and processors, further highlighting the economic demand for marijuana in Oklahoma.

Revenue from Medical Marijuana Sales

The revenue generated from medical marijuana sales also points to a high economic demand. In 2020, medical marijuana sales in Oklahoma exceeded $800 million, a significant increase from the previous year. This upward trend in sales revenue is expected to continue as more patients register and more businesses enter the market.

Job Creation

In 2022, the Oklahoma medical marijuana industry employed approximately 9,412 full-time workers. By 2023, the industry saw a slight decrease in employment, reflecting broader trends in the U.S. cannabis sector, which experienced a minor decline in job growth. Despite this, the medical marijuana industry in Oklahoma remained robust, continuing to provide significant employment opportunities across various roles, including cultivation, retail, extraction, and ancillary services.

The industry supports a wide range of jobs, from budtenders and dispensary managers to security personnel, cultivation workers, and extraction technicians. Salaries for these positions vary, with budtenders earning between $9 and $13 per hour and managers earning between $40,000 and $70,000 annually. More specialized roles, such as extraction managers and master growers, can earn significantly higher salaries, reflecting the expertise required for these positions.

Overall, the medical marijuana industry in Oklahoma continues to be a substantial employer, contributing to the state’s economy and providing a variety of job opportunities for its residents​ (Cannabis Biz Executive)​​ (Welcome to Oklahoma’s Official Web Site)​​ (Welcome to Oklahoma’s Official Web Site)​​ (Cannabis Training University)​.

Conclusion

In conclusion, the economic demand for marijuana in Oklahoma is high and continues to grow. This is evidenced by the increasing number of patient registrations, the rising revenue from medical marijuana sales, and the growing number of jobs in the industry. As the state’s medical marijuana program continues to evolve, the economic demand for marijuana in Oklahoma is expected to remain strong.

What are the marijuana taxes in Oklahoma and who collects them?

In Oklahoma, the taxation of medical marijuana is a significant aspect of the state’s cannabis industry. The state has established a specific tax structure for medical marijuana, which is collected by the Oklahoma Tax Commission. Understanding this tax structure is crucial for patients, caregivers, and businesses involved in the medical marijuana industry.

Medical Marijuana Taxation in Oklahoma

According to the Oklahoma Tax Commission, medical marijuana in Oklahoma is subject to a 7% excise tax. This tax is in addition to the state and local sales taxes, which vary by location. The combined tax rate can be quite high, making it important for patients and businesses to be aware of the total cost.

Who Collects the Marijuana Taxes?

The Oklahoma Tax Commission is responsible for collecting the medical marijuana taxes. Businesses involved in the sale of medical marijuana must register with the Commission and are required to file monthly tax returns. The collected taxes are then distributed to various state funds.

Breakdown of Tax Distribution

The 7% excise tax on medical marijuana in Oklahoma is distributed to various state funds and programs as follows:

  1. Oklahoma Medical Marijuana Authority (OMMA) Fund: A portion of the excise tax revenue is allocated to the OMMA for its operational costs, which include regulatory oversight, licensing, and compliance enforcement.
  2. General Revenue Fund: Some of the tax revenue goes into the state’s general revenue fund, which supports a wide range of state services and initiatives.
  3. Education: A significant portion of the excise tax revenue is earmarked for education, contributing to the funding of public schools and educational programs throughout the state.
  4. Substance Abuse Programs: The tax revenue also supports substance abuse programs, including prevention and treatment services, as part of the state’s efforts to address issues related to drug and alcohol abuse.
  5. Drug and Alcohol Rehabilitation Fund: This fund specifically targets rehabilitation services for individuals struggling with substance abuse, providing necessary resources and support for recovery programs.

These allocations are designed to ensure that the revenue generated from medical marijuana sales not only supports the industry’s regulation but also benefits broader public health and educational initiatives in Oklahoma​ (Welcome to Oklahoma’s Official Web Site)​​ (Cannabis Biz Executive)​​ (Sales Tax Handbook)​.

Impact on Patients and Businesses

The tax structure for medical marijuana in Oklahoma can have a significant impact on both patients and businesses. Patients must factor in the cost of taxes when purchasing medical marijuana, while businesses need to ensure they are in compliance with tax laws and regulations. Failure to comply can result in penalties and fines.

In conclusion, the taxation of medical marijuana in Oklahoma is a complex issue that involves various state agencies and impacts many stakeholders. It’s crucial for anyone involved in the medical marijuana industry to understand this tax structure and its implications.

How much has marijuana generated in tax revenue in Oklahoma?

Since the beginning of the medical marijuana program in Oklahoma in 2018, the state has generated substantial tax revenue from medical cannabis sales. By the end of 2022, Oklahoma had collected approximately $125.4 million in taxes from medical marijuana. In 2023, the state collected an additional $117.6 million from the excise tax and sales taxes combined. This brings the total tax revenue since the program’s inception to over $366 million.

The tax revenue is distributed to various state funds and programs. This includes the Oklahoma Medical Marijuana Authority (OMMA) Fund, which supports the operational costs of the OMMA, the state’s general revenue fund for education, and substance abuse programs. The OMMA oversees the regulation, licensing, and compliance of the medical marijuana industry within the state​ (Welcome to Oklahoma’s Official Web Site)​​ (Cannabis Biz Executive)​​ (Sales Tax Handbook)​​ (Welcome to Oklahoma’s Official Web Site)​​ (Sales Tax Handbook)​.

Yearly Breakdown of Tax Revenue

2018

  • Total Revenue: The program started in mid-2018, so the revenue for this year was relatively low.
  • Approximate Revenue: Data specific to 2018 is not separately detailed, but initial collections began during this year.

2019

  • Excise Tax (SQ788 Tax): $26,845,441
  • State & Local Sales Tax: $34,481,246
  • Total: $61,326,687

2020

  • Excise Tax (SQ788 Tax): $56,245,887
  • State & Local Sales Tax: $64,566,650
  • Total: $120,812,537

2021

  • Excise Tax (SQ788 Tax): $66,173,758
  • State & Local Sales Tax: $83,265,745
  • Total: $149,439,503

2022

  • Excise Tax (SQ788 Tax): $54,700,502
  • State & Local Sales Tax: $70,668,556
  • Total: $125,369,058

2023

  • Excise Tax (SQ788 Tax): $51,008,462
  • State & Local Sales Tax: $66,620,646
  • Total: $117,629,108

2024 (Year-to-date, January – April)

  • Excise Tax (SQ788 Tax): $17,400,543
  • State & Local Sales Tax: $22,207,485
  • Total: $39,608,028

Summary of Total Revenue

Adding up the totals from each year:

  • 2018: Not specifically detailed
  • 2019: $61,326,687
  • 2020: $120,812,537
  • 2021: $149,439,503
  • 2022: $125,369,058
  • 2023: $117,629,108
  • 2024 (to date): $39,608,028

Grand Total (2018 – 2024 YTD): Approximately $614,185,921 (not accounting for partial 2018 revenue).

This breakdown provides a clear view of the substantial revenue Oklahoma has generated from medical marijuana sales, contributing significantly to various state funds and programs​ (Welcome to Oklahoma’s Official Web Site)​​ (Sales Tax Handbook)​.

Allocation of Tax Revenue

2018

Since the program started in mid-2018, the revenue for this year was relatively low, and specific allocations are not detailed.

2019

  • Total Revenue: $61,326,687
  • Allocations:
    • General Revenue Fund: A portion of the revenue went to the state’s general revenue fund for broad state expenditures.
    • OMMA Operations: Funding for the Oklahoma Medical Marijuana Authority (OMMA) to manage and regulate the industry.
    • Education and Substance Abuse Programs: Funds were allocated to education initiatives and substance abuse treatment and prevention programs.

2020

  • Total Revenue: $120,812,537
  • Allocations:
    • General Revenue Fund: Continued contributions to the state’s general revenue.
    • OMMA Operations: Ongoing funding for the OMMA.
    • Education and Substance Abuse Programs: Support for education and substance abuse programs.

2021

  • Total Revenue: $149,439,503
  • Allocations:
    • General Revenue Fund: Significant portion allocated to the state’s general revenue.
    • OMMA Operations: Substantial funding to the OMMA for regulatory activities.
    • Education and Substance Abuse Programs: Continued funding for educational and substance abuse initiatives.

2022

  • Total Revenue: $125,369,058
  • Allocations:
    • General Revenue Fund: Contributions to the state’s general revenue.
    • OMMA Operations: Funding for OMMA operations and regulatory oversight.
    • Education and Substance Abuse Programs: Allocation towards education and substance abuse treatment programs.

2023

  • Total Revenue: $117,629,108
  • Allocations:
    • General Revenue Fund: Funding directed to the general revenue fund.
    • OMMA Operations: Continued operational funding for the OMMA.
    • Education and Substance Abuse Programs: Support for education and substance abuse-related programs.

2024 (Year-to-date, January – April)

  • Total Revenue: $39,608,028
  • Allocations:
    • General Revenue Fund: Ongoing contributions to the general revenue.
    • OMMA Operations: Funding to support OMMA.
    • Education and Substance Abuse Programs: Continued funding for educational and substance abuse programs.

Summary

The revenue from medical marijuana in Oklahoma is primarily allocated to:

  1. General Revenue Fund: Supporting a wide range of state services.
  2. OMMA Operations: Funding the regulatory body responsible for overseeing the medical marijuana industry.
  3. Education: Contributing to public education funding.
  4. Substance Abuse Programs: Supporting prevention and treatment programs related to substance abuse.

This allocation strategy ensures that the funds generated from the medical marijuana program benefit various critical state functions and services​ (Welcome to Oklahoma’s Official Web Site)​​ (Cannabis Biz Executive)​​ (Welcome to Oklahoma’s Official Web Site)​​ (Sales Tax Handbook)​.

Future Projections

Moderate Growth Scenario

If the market stabilizes and experiences an average growth rate of 2-5% per year:

  1. 2024 Projection:
    • Assuming the full-year revenue might be around $120 million (an estimate considering the year-to-date figures).
  2. 2025 Projection:
    • With a 3% growth: $120 million * 1.03 = $123.6 million
    • With a 5% growth: $120 million * 1.05 = $126 million
  3. 2026 Projection:
    • With a 3% growth: $123.6 million * 1.03 = $127.31 million
    • With a 5% growth: $126 million * 1.05 = $132.3 million

Factors Influencing Future Projections

  1. Regulatory Changes: Any changes in state or federal laws could significantly impact revenue.
  2. Market Saturation: As the market matures, growth may slow down, reflected in more stable revenue figures.
  3. Consumer Trends: Increased acceptance and usage of medical marijuana can drive growth.
  4. Economic Conditions: Broader economic conditions will influence disposable incomes and spending on medical cannabis.
  5. New Products: Introduction of new cannabis-based products could boost sales.

Conclusion

In conclusion, the medical marijuana industry has had a significant economic impact on Oklahoma, generating substantial tax revenue that benefits various state programs. As the industry continues to grow, it is expected to contribute even more to the state’s economy in the future.

What are some of the biggest private marijuana companies in Oklahoma?

As the medical marijuana industry continues to grow in Oklahoma, several private companies have emerged as significant players in the market. These companies are not only contributing to the state’s economy but also providing patients with access to high-quality medical marijuana products. Here are some of the biggest private marijuana companies in Oklahoma.

1. The Peak Dispensary

The Peak Dispensary is one of the largest and most recognized medical marijuana companies in Oklahoma. With multiple locations across the state, The Peak offers a wide range of cannabis products, including flowers, edibles, concentrates, and topicals. The company is committed to providing patients with safe, clean, and effective medical marijuana products.

2. Green Springs Medical

Green Springs Medical is another major player in Oklahoma’s medical marijuana industry. The company operates a state-of-the-art cultivation facility and a dispensary that offers a variety of cannabis products. Green Springs Medical is known for its commitment to quality and patient care.

3. Craft Cannabis Company

Craft Cannabis Company is a premier medical marijuana company in Oklahoma. The company prides itself on its artisanal approach to cannabis cultivation, producing small-batch, hand-trimmed cannabis flowers. Craft Cannabis Company also operates a dispensary that offers a curated selection of cannabis products.

4. Urban Wellness Dispensary

Urban Wellness Dispensary is a leading medical marijuana company in Oklahoma. The company operates several dispensaries across the state, offering a wide range of cannabis products. Urban Wellness Dispensary is known for its knowledgeable staff and commitment to patient education.

These companies represent a significant portion of Oklahoma’s medical marijuana industry. As the industry continues to grow, these companies are likely to play an increasingly important role in the state’s economy and in providing patients with access to medical marijuana.

For more information on Oklahoma’s medical marijuana industry, visit the Oklahoma Medical Marijuana Authority website.

Share This Post:

MMJ Logo
Founded by medical marijuana card experts
Subscribe to our newsletter
The latest news, articles, and resources, sent to your inbox weekly.
© 2024 MMJ. All rights reserved.
HTML Sitemap Sitemap Index

Get Your MMJ Card

You can choose a convenient phone call or a virtual Telehealth meeting. It's a straightforward process to get you on the path to your medical marijuana card.

Renew Your MMJ Card

You can choose a convenient phone call or a virtual Telehealth meeting. It's a straightforward process to get you on the path to your medical marijuana card.