When Colorado’s adult-use cannabis stores opened their doors in 2014, no one predicted how much the industry would contribute to the state’s financial growth. Overtaking all predictions, cannabis products have been sold in excess of $15 billion in 9 years, generating more than $2.5 billion in cannabis tax revenues that have fed a variety of public programs and services.
Read more about Colorado cannabis sales and find the latest cannabis news of the day with the Hemp.im mobile app, available for free for both Android and iOS devices.
Colorado cannabis sales
Through August, total Colorado cannabis sales have reached as much as $15 billion. In 2023 alone to date, cannabis sales have reached $1.05 billion, underscoring the industry’s economic potential.
The accumulated revenue from cannabis legalization over the past nine years has reached $2.55 billion through September, the Colorado Department of Revenue (CDOR) said in a press release.
Legalization Initiative vs. Tax Proceeds
Colorado became the first state to launch recreational cannabis sales after voters approved a legalization initiative on the 2012 ballot. Although annual sales peaked in 2021, when they totaled about $2.2 billion, they have declined somewhat since then and have stabilized over the past two years.
In August, an analysis by the nonpartisan State Legislative Council (LCS) found that Colorado generated more revenue from cannabis taxes than from alcohol or cigarettes in the last fiscal year. The $280 million in cannabis taxes went to various government programs and services, such as education and health care.
Examples of Spending from Cannabis Taxes
In Colorado, cannabis tax dollars fund a variety of services, including substance abuse treatment, preschool education, youth mentoring, bullying prevention, police officer training, supportive housing, research, and combating the illegal market.
CDOR explained in a new press release that the tax revenue comes from several sources: a 2.9% sales tax on cannabis, a 15% tax on cannabis products sold in stores, and a 15% retail excise tax applied to wholesale sales, as well as revenue from licensing fees and cannabis business license applications.
Colorado Governor and His Support for the Cannabis Industry
Colorado Governor Jared Polis (D) has been a longtime advocate of legalization and has worked to expand the existing industry, as well as push for reform at the federal level. Most recently, he supported President Joe Biden’s actions after his administration’s top health authority recommended reclassifying cannabis. Nevertheless, he stressed that this initial move must be followed up with further steps to address cannabis banking, justice system reform, and concerns about enforcement at the federal level.
Although Colorado cannabis sales have declined in recent years, other, newer markets with legal cannabis are often seeing record sales numbers this year. In Illinois, for example, officials recently boasted of “unprecedented growth” in the industry in fiscal year 2023, where regulated stores sold more than $1.5 billion worth of cannabis products.
Innovating and expanding the cannabis industry
In Colorado, the governor also urged legislators to take steps that would allow him to issue mass pardons for people with prior convictions for using psychedelic substances after he signed legislation in May to regulate substances such as psilocybin mushrooms and ayahuasca.
Polis also signed a law in June that allows the sale of cannabis online. This reform went into effect in August.
Conclusions and Perspectives
In analyzing the success of Colorado and other states, it is worth noting how crucial a properly structured legal and tax structure is to ensure the sustainability of the industry. The economic potential, as well as the social and medical benefits of legalizing cannabis, are enormous, but they also require responsibility and awareness on the part of producers, distributors and consumers alike.
The cannabis market, current and future, remains a fascinating area that requires constant observation and analysis, with both economic and social considerations. Colorado is a great example of how the right legal framework and public awareness can help create a valuable and ethical cannabis industry.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
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.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
ESG Investing Is About Getting It Right Over the Long Term Without Losing Profitability
There are many aspects that condition the selection criteria in ESG investment, such as the environmental or social dimensions, without...
Soybeans and Soybean Oil Appears to start a New Leg Down on the Charts
Soybeans and the products closed lower last week on improved rains for central and northern Brazil and still too much...
Why Coinbase Increasingly Relies on Solana
The crypto exchange Coinbase has set itself the goal of processing transactions in less than a second and for less...
Roche Will Pay Up to €2.8 Billion for Carmot Therapeutics
Roche is set to acquire Carmot Therapeutics, along with three clinical-stage assets for treating obesity and diabetes, for a maximum...
Groupon Is Overhyped and Overexposed — Here’s Why RDE, Inc. Is a Better Alternative
In the last month or so, Groupon’s been on a little bit of a recovery bull run following some hype...
Crowdfunding2 weeks ago
Yeldo Crowd Raises €2.5 Million for Affordable Housing Project in Monza
Cannabis7 days ago
Cannabis Legalization in Ukraine Delayed by Opposition Party
Impact Investing2 weeks ago
The Market for Smart Cities Is Worth €800 Million and Growing
Cannabis5 days ago
Germany Has Finally Legalized Cannabis