Marijuana has been a cash cow for Colorado, and while not running dry, the state has seen a reduction of related revenue flowing into its coffers. Here's why.
Medical cannabis has been legal in Colorado since 2000 and marijuana for recreational use since late 2012. To the end of September last year, the state had collected more than $22.6 billion from cannabis taxes and fees. The state's 15 percent excise tax and 15 percent sales tax accounts for the majority of Colorado's marijuana-related revenue, and there is also a 2.9 percent state sales tax on medical cannabis.
But the September 2024 Economic & Revenue Forecast by the Colorado Legislative Council Staff indicates cannabis revenue has been continuing to decline, albeit at a slowing rate.
The report states the drop is largely attributable to reduced consumption after a surge during the COVID-19 pandemic. Additionally, demand has been falling as other states across the country legalize marijuana, which has seen reduced related tourism in the state.
Read more at Hemp Gazette.