Editorial: Will Arkansas, Texas Pursue Cannabis Sin Taxes?
- Texas does not allow the sale or use of marijuana, either for medical or recreational purposes. However, in New Mexico, just across the border from Texas, there are many dispensaries selling recreational cannabis, with much of the business reportedly coming from Texas residents. The large number of cannabis dispensaries has led to the area being dubbed “Little Amsterdam”.
- Similarly, in Missouri, a state where recreational marijuana is legal, there is a large store called Flora Farms near the border with Arkansas, a state where only medical marijuana is legal. The store offers a variety of cannabis products, and was moved to its current location to be closer to the Arkansas border following the legalization of recreational marijuana in Missouri.
- The sale of cannabis could potentially lead to the collection of lucrative sin taxes, which are not currently being collected in Arkansas or Texas. It is unclear whether this could lead to changes in marijuana legislation in these states, but Arkansas may change its legislation sooner than Texas, according to the article.
Texas Marijuana Laws vs. New Mexico’s Booming Cannabis Industry
Despite marijuana’s illegality in Texas, the booming cannabis industry just across the border in New Mexico tells a different story. Countless dispensaries, particularly in Sunland Park, profit from the influx of Texas residents, a phenomenon so significant that the New York Times named the location “Little Amsterdam”.
Arkansas and Missouri: A Similar Cannabis Contrast
Similar situations are seen between Arkansas and Missouri. While Arkansas only allows medical marijuana, Missouri’s Pineville area, a stone’s throw away from Arkansas, is thriving with recreational marijuana sales. Flora Farms, a well-known cannabis store, even relocated 25 miles closer to the Arkansas border once marijuana was decriminalized in Missouri, according to KARK-TV.
Missed Opportunities for Sin Taxes
With the cannabis industry’s expansion, Arkansas and Texas miss the lucrative opportunity of state sin taxes on cannabis products. History shows that products like alcohol, previously subjected to inter-state prohibitions, were eventually legalized to benefit from these sin taxes. Could it be a catalyst for legal recreational marijuana in Texas and Arkansas?
The Future of Marijuana Laws in Texas and Arkansas
Though it’s uncertain whether Texas and Arkansas will follow the growing marijuana legalization trend, predictions lean towards Arkansas giving in sooner. Texas’s resistance to legal casino gambling, despite its presence in neighboring states, may hint at a similar stance towards marijuana.
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