(NewsNation) — The U.S. House of Representatives on Friday passed legislation that would legalize marijuana at the federal level — a sign that Congress may be starting to take comprehensive cannabis reform more seriously.

The Marijuana Opportunity Reinvestment and Expungement Act, also known as the MORE Act, would remove marijuana from the list of scheduled substances under the Controlled Substances Act and eliminate criminal penalties for anyone who manufactures, distributes or possesses cannabis. The proposal would also require federal courts to overturn previous marijuana-related convictions and provide funding to communities hardest hit by the war on drugs.

The bill is unlikely to become law since it is expected to die in the Senate. This would mirror what happened when a similar measure passed by the House removing marijuana from the list of federally controlled substances went nowhere in the Senate two years ago.

The delay continues to frustrate cannabis policy reform groups, who say blocking major legislation has real consequences for those affected by current marijuana laws.

“In 2022, you can still lose your job, you can still lose your kids in a custody battle, you can still be in a situation where you can’t apply for a student loan or sign a lease. There are all kinds of negative consequences for millions of people who still live under prohibition today,” said Toi Hutchinson, president and CEO of the Marijuana Policy Project, a Washington-based marijuana advocacy group. .

National polls show that the vast majority of Americans support the legalization of marijuana in one form or another. A 2021 Pew Research poll found:

• Over 90% of American adults say marijuana should be legal in some way
• 60% say it should be legal for medical and recreational use
• 31% say it should be legal for medical use only
• Less than 10% of respondents said marijuana shouldn’t be legal at all

“It’s a home run that could easily be done by the United States Congress, both houses, and we’re all looking forward to it; also a president, who promised he would be different about it and hasn’t yet,” Hutchinson said.

states move forward alone

So far, 18 states, plus the District of Columbia, have legalized marijuana for recreational use and 37 states have legalized the medical use of marijuana.

In January 2014, Colorado became the first state to begin retailing recreational marijuana. Since then, the industry has grown rapidly. Currently, there are more than 3,000 active marijuana business licenses and 43,000 licensed employees in the state, according to the Colorado Marijuana Enforcement Division.

This growth also means billions of dollars in tax revenue.

“Since legalizing the retail sale of marijuana, we’ve had over $12 billion in sales and over $2 billion in tax revenue,” said Shannon Gray, communications specialist at the Colorado Marijuana Enforcement Division. .

Last year, Colorado earned over $423 million in cannabis tax revenue. These funds are intended for various state programs, including public health campaigns, law enforcement and schools.

But each state distributes its cannabis tax revenue differently. Last fiscal year, Nevada saw over $1 billion in retail cannabis sales, which generated approximately $160 million in tax revenue for the state. After covering enforcement and regulatory costs, the extra money goes almost exclusively to education in the state.

“In Nevada, cannabis tax revenue goes toward education. It funds some education programs, a lot of it goes to the state education fund, and then to other scholarships,” said said Tyler Klimas, director of Nevada’s Cannabis Compliance Board.

So how much do states make from their marijuana sales and how is that money spent?

California

Legalized recreational marijuana: Nov 2016

Retail sales have started: Jan 2018

How is it taxed?

• Cultivation tax
  • $10.08 an ounce for the flower
  • $3.00 per ounce for leaves
  • $1.41 per ounce for a fresh cannabis plant
• excise tax
• Sales tax
  • 7.25% state plus local taxes

Tax revenue generated: Between state excise tax, cultivation tax, and sales tax, cannabis sales generated nearly $1.3 billion in 2021.

How it’s used: California cannabis tax revenues cover the administrative costs of the program and then are allocated to youth-focused anti-drug programs, public safety initiatives, research, and other state and local programs.

Colorado

Legalized recreational marijuana: Dec. 2012

Retail sales have started: Jan 2014

How is it taxed?

• Marijuana retail sales tax: 15%
• Marijuana wholesale excise tax: 15%
• Additional local taxes depend on the municipality

Tax revenue generated: Colorado earned more than $423 million in cannabis tax revenue in 2021. Last year’s tally brought the state’s lifetime cannabis tax revenue to more than $2 billion.

How it’s used:

• Excise tax revenues are credited to the Building Great Schools Today (BEST) Fund. The fund is used to renew or replace deteriorating public schools.
• Marijuana retail sales tax revenue:
  • 90% goes to:
    • Approximately. 72% to the Marijuana Tax Cash Fund (used for health care, health education, addiction and treatment programs, and law enforcement).
    • Approximately. 15.5% goes to the general state fund
    • Approximately. 12.5% ​​goes to the State Public Schools Fund
  • 10% is allocated to local authorities

Illinois

Legalized recreational marijuana: The bill was passed by the state legislature in May 2019

Retail sales have started: Jan 2020

How is it taxed?

• Cultivation tax:
  • 7% off dispensaries selling cannabis
• Retail excise taxes:
  • 10% off marijuana with a THC level of 35% or less
  • 20% off cannabis-infused products
  • 25% off marijuana with THC over 35%
• Sales tax:
  • 6.25% statewide and additional local taxes may apply

Tax revenue generated: Illinois reported $317 million in cannabis tax revenue in fiscal year 2021.

How it’s used:

• 35% to general revenue fund
• 25% off restorative justice and cannabis equity programs
• 20% to fight addiction, prevention and mental health problems
• 10% to pay state bills
• 8% to local governments for crime prevention programs
• 2% to fund public education campaigns

Nevada

Legalized recreational marijuana: Nov 2016

Retail sales have started: July 2017

How is it taxed?

• Retail excise tax:
• Wholesale excise tax:
• Sales tax:
  • 4.6% statewide and additional local taxes may apply

Tax revenue generated: Approximately. $160 million in fiscal year 2021 after the state surpassed $1 billion in retail sales for the first time since legalization.

How it’s used: Tax revenue covers the cost of regulating the state’s marijuana industry, and any remaining funds go toward education.

Oregon

Legalized recreational marijuana: Nov 2014

Retail sales have started: October 2015

How is it taxed?

• Retail sales tax:
  • 17% for all recreational marijuana sold
  • 3% additional for select Oregon locations

Tax revenue generated: Oregon collected more than $178 million in tax revenue from cannabis sales in fiscal year 2021.

How it’s used:

Cannabis tax revenues cover the administrative costs of the program as well as enforcement costs. Additional funds are directed to the Drug Treatment and Recovery Services Fund. After that, the remaining funds are distributed as follows:

• Public Schools Fund: 40%
• Oregon Health Authority for mental health treatment: 20%
• State Police: 15%
• Cities: 10%
• Counties: 10%
• Oregon Health Authority for alcohol and drug abuse prevention: 5%

Washington

Legalized recreational marijuana: Dec. 2012

Retail sales have started: July 2014

How is it taxed?

• Excise tax: 37%
• General Sales Tax: 6.5% statewide, additional local taxes may apply

Tax revenue generated: $559.5 million for fiscal 2021, nearly 20% more than the prior year.

How it’s used:

• The majority of Washington’s marijuana tax revenue goes to public health programs and the state’s general fund. According to the State, the 2021 turnover was distributed as follows:
  • Basic health: $272 million
  • General Fund: $191 million
  • Washington State Health Care Authority: $54 million
  • Local governments: $15 million
  • Washington Alcohol and Cannabis Commission: $10.4 million
  • Department of Health: $9.7 million
  • Washington State Patrol: $2.3 million