DFA does not plan to release report on tax impact of Issue 4 October 27, 2022 By Griffin Coop The Arkansas Department of Finance and Administration does not plan to provide projections for tax revenue for Issue 4 before the election next month, department spokesman Scott Hardin said Thursday. Last month, opposition leader Jerry Cox said in an interview that he had requested a financial impact study from the department. Hardin said the department did not have a report at the time but would consider the potential revenue impact of the measure. Hardin said Thursday he does not anticipate the department releasing a study before the election. “I don’t anticipate our Department will release any revenue projections for Issue 4 prior to the election,” Hardin said via email. “We have been tracking sales in states such as New Mexico as research on this issue. However, this will not result in any formal projections prior to November 8.” The amendment would legalize marijuana for adults 21 and older, increase the maximum number of cultivation facilities to 20 and increase the number of dispensaries to 120. The amendment would eliminate the tax on medical marijuana and would impose a 10% supplemental tax on recreational marijuana purchases. According to the amendment, 15% of the tax revenue would fund a stipend for certified law enforcement officers, 10% would go to the University of Arkansas for Medical Sciences and 5% would go to drug courts. An economic impact study performed by the Arkansas Economic Development Institute, and funded by amendment sponsor Responsible Growth Arkansas, found that a legal cannabis industry under this amendment in Arkansas would generate $2.36 billion worth of economic activity. The report found that legalization under the amendment would generate $460 million over five years. That report can be found here.
