Colorado Collects Over $1 Million In Marijuana Tax In Less Than One Month

Colorado has collected more than $1 million in marijuana tax revenue in less than one month. If the trend continues, the yearly tax revenue could top $100 million. Early estimates, before the laws changed, were closer to $70 million per year.

Revenue generated by sales of legal marijuana could eventually top alcohol, cigarette, and tobacco products. In 2013, Colorado collected $39.9 million in alcohol related taxes and $31.6 million from tobacco related products. Cigarettes still stand out, with an annual tax revenue of $165.5 million. However, that could change.

Colorado’s new marijuana legislation requires the first $40 million in tax revenue to go toward improving schools. As reported by Today, the excess revenue will help the state fund numerous municipal projects, including roads, bridges, and public parks.

Mason Tvert, with the Marijuana Policy Project, said the regulation and taxation of marijuana is a reasonable solution for other states experiencing financial difficulty:

“Elected officials around the country are watching what’s happening in Colorado and they’re recognizing that there’s a better way to handle marijuana.”

Faced with a $100 million state deficit, Rhode Island Senator Sen. Joshua Miller proposed legalizing marijuana in his state. Miller said marijuana sales could raise up to $20 million in tax revenue, which could “take care of more than 20 percent of the deficit… every year.”

Miller also noted legalization of marijuana would save the taxpayers money, as it would reduce the number of marijuana related arrests, court proceedings, and incarcerations.

Tvert expects Colorado’s marijuana tax revenue to continue to increase as more businesses open and supply is available. Several current shop owners have been forced to close their doors, as the city is currently experiencing a shortage.

Toni Fox, with 3D Cannabis, said she is currently selling an average of $20,000 worth of marijuana per day. However, KGW News reports inventory is in short supply. Fox said she could easily sell $40,000 per day if she simply “had enough inventory.”

Critics argue that marijuana use can lead to negative long-term consequences, which are still largely unknown. Some critics believe the funds spent to treat marijuana addiction will outweigh the increase in tax revenue. Others believe marijuana is simply a “gateway” drug, which will cause other addictions and an increase in drug-related crime.

The debate for and against marijuana use remains a hot topic. Although the legislation is new and the long-term implications are unknown, the state is already seeing a positive impact. The increased tax revenue will help fund projects that the state otherwise could not afford. The same could be true for numerous other states throughout the nation.

Colorado’s marijuana tax revenue for the first month was calculated using data provided by 18 sources.