The City of Wilmington is in the initial stages of asking the Delaware General Assembly if it can receive tax revenue from recreational marijuana sales.
During Delaware’s adult-use recreational marijuana legalization process in 2023, the legislature decided on a 15% state tax on all products.
7% of revenues from that tax will go into the Justice Reinvestment Fund for criminal justice reform work — after that appropriation and covering any overhead costs, the remainder of the profits will be distributed at the discretion of the General Assembly.
While the general idea is for some of that money to trickle down to the cities, the law does not specify how much should be appropriated or where it should go.
Wilmington City Council Finance and Economic Development Chair Chris Johnson has created a resolution asking the state legislature if Wilmington can get a designated share of those funds, with the expected recreational marijuana market launch just months away.
“Wilmington, based on our population, is the most impacted by the War on Drugs. I believe we should have a greater share,” Johnson said.
His resolution notes that with the legalization of recreational marijuana came an effort from the state to better serve areas disproportionately affected by marijuana prohibition — 35 “Disproportionately Impacted Areas” are composed of communities within the City of Wilmington.
“Say, if even Wilmington can do a small percentage, so we can get a little piece of the pie. Because those revenues should be staying in Wilmington and not even go outside of Wilmington,” Johnson added, explaining the resolution does not request a specific percentage of revenue.
The resolution requests either a direct allocation from the marijuana tax or be allowed to levy a municipal tax that only Wilmington can profit from.
The resolution received no discussion or public comment but heads to the full council for consideration on November 21.
If the full council passes the resolution, it will be sent to the General Assembly as a formal request.
The City of Wilmington is in the initial stages of asking the General Assembly if it can receive tax revenue from recreational marijuana sales. Read More
