Here is a breakdown of the taxes the state of Colorado received from the sale of marijuana in January (the first month that marijuana was legally sold to adults in that state):
$1,400,000 from 10% sales tax on marijuana
$416,690 from the regular 2.9% sales tax the state gets
$195,318 from the marijuana business excise tax
$2,012,008 total tax received in January
The Denver Post called that a disappointing figure -- and it is below what some people projected the state would get from legal marijuana sales. But $2 million in new revenue in one month (which would project to $24 million a year) is nothing to sneeze at. That's a significant amount that the state won't have to get by raising other kinds of taxes.
And remember, that's just for the first month of legality. I'm sure there were many that held back, waiting to see how things went before purchasing some for their own use. I expect sales (and therefore tax revenues) will go up as people get used to the idea that marijuana purchase and possession is now legal. And we shouldn't forget that the state is not the only entity benefitting from the new tax revenue. The city of Denver benefitted by an additional $744,868 in January revenue.
first off, i am not against this whole legalization of the wonder weed. i am however skeptical of the longer term effect of what might be seen as far as these tax revenues go. to project 24 M because of a single month might be premature and really shouldn't be considered when it comes to developing a new state budget for the state of colorado. this is especially true if the surrounding states take the step towards legalization as the amount of business from outside colorado's borders will decline.
ReplyDeleteEnjoy the increase Colorado, hope it helps you take care of your people rather than your politicians.