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the other hand, taxes can raise the price of marijuana. Miron (2005) chooses two tax <br /> regimes; a relatively normal one and one that imposes "sin" taxes on mazijuana that aze <br /> equivalent to those charged for alcohol and tobacco. He then allocates a national number <br /> to each state based on either consumption or population, and divides that total between <br /> federal and state taxes. Miron's estimate for Hawaii tax revenues is in the $4 million <br /> range. By contrast, tax revenues for tobacco in Hawaii during 2003 were $77.5 million <br /> <br /> ,r and for liquor were $41 million, with 462,000 adults consuming alcohol in the last 30 <br /> days and 221,000 consuming cigazettes.~s This provides a range of annual per capita tax <br /> collections of $91.23 for alcohol and $350.59 for tobacco. There were approximately <br /> 58,000 adult marijuana users during that year. Assuming that they will pay a per capita <br /> amount of taxes similaz to cigarette and alcohol users, then the range of marijuana tax <br /> collections would be between $5.3 million and $20.3 million. <br /> The Implications of Decriminalization and Le;~alization on Use <br /> y Decriminalization: <br /> Currently in Hawaii, the chance of a marijuana user being arrested and convicted <br /> is approximately 0.4 percent. The appazent lower priority given by law enforcement and <br /> relatively mild penalties for marijuana offenses reflect policy decisions that make the <br /> probability of arrest and punishment of marijuana users insignificant and decreases the <br /> r <br /> potential effects of decriminalization. Gary Becker suggests two efficient means of <br /> allocating enforcement resources. One would be to have lots of police, so law-breakers <br /> r, face a high risk of arrest but the punishments are somewhat mild. A second regime would <br /> be to have fewer police, reducing the risk of arrest but have severe or draconian, <br /> „r punishments for those who are caught. Either can function as a deterrent. Hawaii, it can <br /> be said, meets neither. There is a low risk of arrest and a mild punishment. This means <br /> marijuana users in Hawaii perceive the probability of arrest and punishment as <br /> insignificant. <br /> ar <br /> r 15 Use from 2002-2003 National Surveys on Drug Use. Tax data from Hawaii State <br /> Department of Taxation http://www.hawaii.gov/tax/ <br /> ~r <br /> 12 <br /> a <br /> ar <br /> <br />