Editorial: Cannabis is an economic development tool
Since the first adult-use marijuana retailers opened in Massachusetts in November 2018, the nascent industry has generated some $2.12 billion in revenues, according to the state Cannabis Control Commission. For the communities that choose to embrace this new group of businesses, their local 3% slice of the sales tax revenues – a figure on top of any property taxes – adds up to in excess of $60 million to date.
In the months leading up to the 2016 ballot initiative eventually clearing the way for recreational cannabis sales in Massachusetts, those against the measure warned of multiple boogeymen, who would bring traffic and increase crime – destroying the fabric of local communities. They said pot shops would create public safety hazards in their communities, lead to a rise in under-the-influence automobile fatalities, spike drug use among children, and clog traffic for hours as crowds gathered to dispensaries. Yet, three years since the first dispensaries opened, none of this has come to pass. The damage wrought on our society by social media appears much more damaging than any ill effects of the cannabis industry.
The various cannabis businesses in and around Central Massachusetts – which include dispensaries, cultivation facilities, manufacturing plants, and testing labs – have proved themselves to be strong supporters of their communities: creating jobs, donating to local causes, and ensuring legal operators in the industry remain above board. You could drive by any of the number of pot shops in Central Massachusetts and never know it, with the shopping experience feeling more like a trip to an upscale jeweler than the cousin of a back-alley deal.
While many communities have benefited by pursuing the industry, 23 communities around Central Massachusetts – like Holden, Westborough, Lancaster, and Auburn – have instituted either outright bans on all cannabis businesses, or partial bans against retail sales. Based on the evidence, it feels like it's due time for all communities in the region to lift these prohibitions. While some municipalities may not want to actively court marijuana-related businesses, they should at least eliminate the bans and gain a few of the significant tax benefits coming from hosting the industry. Our last editorial from the Sept. 27 edition was about the overuse of tax incentives to attract industry, but here, communities can get a premium for landing cannabis businesses.
Much can be gained by embracing the industry. Worcester, which has 12 cannabis dispensaries in the city with another three slated to open, has collected $1.23 million in local tax revenue since sales first began in 2019. That number will grow annually as the city reaches its capacity of 15 marijuana retail businesses. Likewise, the small town of Hopedale recognized the potential to build its tax base with cannabis businesses in the Blackstone Valley where almost half of its surrounding communities have enacted marijuana restrictions. Hopedale already has one open cannabis shop in town, with two more on the way.
Legalizing marijuana may have been a controversial topic five years ago, but that time has passed. After a few fits and starts, the industry has proven itself to be an asset to the Central Massachusetts business community. Cities and towns around the region need to recognize that fact, or risk being left on the outside looking in.
WBJ Web Partners
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