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In fact, when the California Legislative Analysts Office (LAO) released its official analysis of legalization prior to being approved by voters, it made clear that tax revenues could reach $1 billion annually, but not right away. LAO emphasized that revenues are likely to be significantly lower in the first several years following the passage of the measure, and that it could be several years after the measure passes before revenues reach the range described above. This prediction aligns with ITEPs finding that cannabis revenues tend to start low but grow significantly through the first five years as the market matures