Commonwealth Cannabis Commission member Joe Palacios speaks during a public hearing in the Senate chamber in Dec. 2023.
THE cannabis industry has generated a total economic gain of $1.466 million, from which the government has collected over $217,000 in business gross revenue tax as of July this year, according to Commonwealth Cannabis Commission member Joe B. Palacios.
In an interview on Saturday, Palacios said retired educator Ambrose Bennett’s claim that the CNMI government is losing money because it collected only $217,000 in BGRT, but pays the cannabis commission $300,000 “is misleading at best, inaccurate and the facts do not support what he is saying.”
Palacios said the $217,000 in BGRT represents only 15% of the total income from economic activities generated by the cannabis industry, which amount to $1.466 million.
In the fiscal year 2024 budget, the commission was allotted $277,750. The commission was appropriated the same amount in FY 2025.
Palacios said since the cannabis industry has generated over $217,000, that means the government spends only $60,000 to oversee the industry.
He said the cannabis industry complements other businesses in the CNMI because it creates demand for other products such as top soil and other supplies necessary when growing cannabis. If a store on island, for example, was selling only one container of top soil prior to the creation of the cannabis industry, that store now is selling three to four containers of top soil, Palacios said.
He said he is not an economist, but as a businessperson, he would invest $60,000 each year in a business that is generating $1.466 million.
The most important thing about the cannabis industry, he said, is that all the employees of cannabis producers and dispensaries are locals.
“No matter how much taxes you are going to pay, what matters is, is the industry going to create jobs? The cannabis industry creates jobs for locals. The businesses are locally owned. And that money does not go anywhere. It stays within the CNMI. The money is spent here,” Palacios said.
Aside from Palacios, the other members of the Cannabis Commission are its chairman, Juan Iguel, vice chair Journie M. Hofschneider, Thomas L. Songsong and Joseph S. Rios Jr. The managing director is Mikiotti Evangelista.
