Colorado Cannabis Tax Revenue Was Higher than Alcohol and Cigarettes

For years, advocates of cannabis legalization have strongly emphasized its potential as a source of revenue for the state. After nearly a decade, an analysis of tax data by the Colorado State Legislative Assembly shows that these predictions have become reality.

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Cannabis vs. alcohol and cigarettes: Market dominance

In fiscal year 2022-2023, Colorado collected more revenue from cannabis taxes than from alcohol and cigarettes combined. The state collected $282.3 million in tax revenue from cannabis, nearly $50 million more than from cigarettes, and $226 million more than from alcohol.

In comparison, the total revenue from cigarette and alcohol taxes was “only” $290 million. While these numbers are still impressive, they pale in comparison to the profits generated by legal cannabis.

Investment in education: Where does cannabis tax revenue go?

One of the most notable aspects of this financial success is that cannabis tax revenues have been mainly directed to funding education. According to the law, most of these funds went to school construction and education.

The report showed that about 37% of the total spending from cannabis revenues went to fund education and school construction. In turn, about 20% went to the Department of Social Services for a variety of programs, including those focusing on behavioral health and addiction.

The legalization of cannabis in Colorado has proven to be more than a social experiment. It is now a significant part of the state’s economy, with benefits extending beyond cannabis itself. The results make a strong case for other states and countries considering legalization, showing that it is not only ethically right but also financially viable.

In an era of growing acceptance and shifting social perspectives on marijuana, Colorado is leading the way for others, demonstrating that legalization, properly managed, can yield a number of benefits. Not only does it generate significant tax revenue, but it also supports key sectors like education and public health.

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(Featured image by pasja1000 via Pixabay)

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First published in Fakty Konopne, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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