John SchroyerThe Pennsylvania Legislature finished the state budget and took a pass on legalizing recreational marijuana, despite calls from the governor to create a new tax revenue stream with the move.
Although legalization itself as a policy wasn’t a significant obstacle, what turned out to be a stumbling block was consensus over how an adult-use market may be structured, Spotlight PA reported. Some Democrats were pushing for a state-run cannabis industry, akin to how Pennsylvania runs its liquor industry, but other lawmakers and marijuana business interests resisted such a structure.
Given that the GOP holds the state Senate while Democrats control the House of Representatives, it was also notable that there were several Republicans who opposed legalization, as well as demands from the Legislative Black Caucus for social equity provisions for those jailed for marijuana-related crimes. The combination of political obstacles was more than the legislature could overcome this year to create a regulated adult-use cannabis market in the state, Spotlight PA reported.
There was a nugget of political victory for Pennsylvania medical marijuana companies, however, with Gov. Josh Shapiro signing off on a new law to give the industry state-level tax credits that would offset the federal 280E tax burden, which disallows plant-touching marijuana companies from claiming standard business deductions.
“The legislature left a critical issue behind as they crafted a budget that did not include adult-use cannabis,” said Brit Crampsie, spokeswoman for the advocacy organization ResponsiblePA, according to Marijuana Moment.
“As Pennsylvanians go on vacation this summer to New York, New Jersey, Maryland, and even ‘friggin’ Ohio, they will witness these states rake in millions, as our state legislature fails to act,” Campsie said. “We are hopeful that with the progress made in this budget, that adult-use legalization is at the top of the legislative agenda when the legislature returns in September.”
The news is likely a major disappointment to many cannabis companies that hoped Shapiro’s full-throated support for legalization would translate into a new market opportunity. One report found that the state’s market potential was $2.8 billion, and many existing medical cannabis operators in the state have been betting heavily that the mid-Atlantic state will go recreational.
But now, it’s not clear when that transition may happen, akin to nearby Virginia, where political discord has kept a recreational marijuana market launch in limbo.
13 comments
Daniel
July 16, 2024 at 9:36 pm
Moved from PA to Cali in ’95, didn’t know anyone, not really invited to parties that first year. The NEXT year, 1996 the state legalized medicinal weed. Back then ounces were a few hundred, Today you can get great quality ounces for under one hundred. I truly feel sorry for PA.
Jh
July 17, 2024 at 5:57 am
Overgrow my man, all they want to do is regulate and control. Ehh? That’s not a free country, and not having cannabis takes away my happiness. F the man.
Aj
July 17, 2024 at 7:39 pm
Control and indirectly manipulate and charge for things that grow for free and on top of it all charge a mofo for water, fruit, and weed…….Greedy
Jason
July 17, 2024 at 7:50 am
This is why this state is a joke!
Gumpa
July 17, 2024 at 8:06 am
It’s a shame we have to go out of state to buy it. I’m only half hour away from Maryland so I’ll continue to toi go there if I need.b Besides Pa already over taxes it’s people. Then after the signed. Budget there’s still how many billions of dollars left that they can use to help their senior citizens out with. Maybe a couple of bucks to help with heat. By the way if you check the Poverty level for fuel assistance hasn’t changed in almost 20 years yet every thing has going up in price like groceries and FUEL or anything else you can name. I’ll bet my life on it that they’ll give themselves a raise. You’re in office to serve us not yourself. It’s time we VOTE these lifers out in November. Doesn’t matter with who Democrats or Republicans. Put them in a bag and shake they all come out stinking. Well time to go give Maryland my money. In fact I’ll buy my gas there also.🤬🤬🤬
Rhea Glover
July 17, 2024 at 8:45 am
Yes so instead of moving forward and making money. I thought that was the main reason. Second they won’t raise minimum wage either. We’re still stuck in the 1700s with what Pennsylvania really wants. Nothing. We need our schools back up and running for the kids and their health. Poverty is ridiculously high and no job to pay the highest rent on 7.50 a hour. Really. The liquor control board has been sticklers since prohibition era. So I ask you Pennsylvania is there a time to rebuild and make us better. It’s disgusting our New governor is wanting the change but look around. Unreal
George
July 17, 2024 at 10:05 am
It’s a shame all the states around us are legalizing it but Pennsylvania is so far back in the Stone age it’ll never get legalized here that’s one reason why I’m getting ready to retire and move out of Pennsylvania I am tired of being nickel and dime to death for what for me to survive with hardly anything I’m getting ready to go on social security I’m not going to live here when I collect it I’d sure like to have a little bit more money than what they’re giving me it’s a shame we even pay taxes at all all we’re doing is making the filthy bastards rich and we’re going broke wake up Pennsylvania people it’s your state stand your ground
warren
July 17, 2024 at 10:09 am
it’s completely assnine not to legalize weed for gods sake mean while taxes continue to go up and these rejects with their rediculas views mean while yes all other states taking in revenue from the sales and creating a new job market. wait until good oh josh goes up for reelection i know one person he won’t get a vote from this is insane
Michael
July 17, 2024 at 11:13 pm
All these scumbags want to do is tax and waste, and tax and waste! I’m tired of paying taxes on the same dollar over and over! The whole government needs a total overhaul! Half of it needs to be cut right off the bat and lets start from necessities and build up from there! What happened to property tax relief from the casino revenue? That lasted all of what, 5 years? I’m completely sick of it! The Federal government needs to go away completely! All they do is start wars and create reasons to tax us more and more and for what? When was the last time anyone ever thought, “I’m glad the Federal government did _____” ?? .. I’ve never heard it in my 43 years! Let the heads start rolling, they need to be checked once and a while!
Lia
July 18, 2024 at 3:09 am
Pa is so weird . wont legalize rec but will throw yearly cannafest open to the public , no medical card needed . like make it make sense
David R Darwin
July 18, 2024 at 5:09 am
There are advantages to working in NJ.
Peter Puffin
July 18, 2024 at 2:55 pm
Well originally I am from MD where marijuana is recreational I moved to PA 20 years ago and I’m about ready to pack my bags and move back to MD. But on another note I’ma smoke marijuana whether it’s legal or not. I’m not a saint I break the law by smoking weed but whatever it is what it is. PA won’t get rec weed cause it hurts the pockets of pill addicting pharmaceutical companies. If cigarettes and alcohol are the leading cause of death then why are they not illegal??
Block Blast
August 14, 2024 at 12:03 am
I’m frustrated that the state is missing out on the potential tax revenue and economic benefits that a regulated adult-use cannabis market could bring.