Marijuana legislation in the United States dates back to the early twentieth century. History has shown how policymakers have twisted the creed of marijuana to something dangerous and deadly. Yet, recent years have shown how individual states have been able to reduce the stigma surrounding this drug. Proposition 19 was defeated in California during November of 2010. This proposition would have legalized the consumption, production, and possession of marijuana in California for adults 21 years of age and older. This thesis illustrates the fiscal benefits that might be realized if marijuana were legalized, regulated, and taxed. While other results have recently been produced, this paper combines data, theory, and estimates from a number of renowned sources, to find the potential tax revenue that could be generated from legalization. The results are compiled with current budget deficit and revenue figures, to find the overarching fiscal impact. While others have offered different outcomes, the results indicate that legalization will only slightly improve the monetary situation in California.