"It will bring in tens of millions of dollars that will be reinvested in our state.?
Colorado, one of the states at the forefront of the new legal cannabis trade in the United States, has announced that it has made more money from selling marijuana that it has from the sale of alcohol.
The Colorado Department of Revenue showed that nearly $70 million dollars in tax revenue has been accumulated from the sale of cannabis, while just $42 million had been collected from the alcohol industry.
The passing of Colorado’s Amendment 64 has created the nations first legal cannabis market. Advocates of the amendment say that the sales achievement is more than enough to show people that the cannabis industry is worthy of it’s tax free day this Wednesday.
Marijuana taxes have been incredibly productive over the past year, so this tax holiday is a much-deserved day off, Mason Tvert, director of communications for the Marijuana Policy Project, said in a statement. “This will be the one day out of the year when the state won’t generate significant revenue. Over the other 364 days, it will bring in tens of millions of dollars that will be reinvested in our state.”
The account was released earlier this week and showed that the exact amount earned in tax revenue from cannabis was $69,898,059 between 2014-2015.
There are many factors as to why cannabis has beaten alcohol in tax revenue. The first of which is that customers tend to spend much more in one go on cannabis than they would when they were buying alcohol. Another is that the tax system attached to Colorado cannabis sales is set up to collect massive amounts of cash. The government takes the standard 2.9% tax, as well as a 10 percent special sales tax on retail marijuana and another 15 percent on wholesale transfers.
That means that over a quarter of every legal cannabis transaction is going to the state.
“It’s crazy how much revenue our state used to flush down the drain by forcing marijuana sales into the underground market” Tvert said. “It’s even crazier that so many states are still doing it. Tax revenue is just one of many good reasons to replace marijuana prohibition with a system of regulation.”
It seems that cannabis regulation has given massive profits to the state, and hopefully all this cash will invested with good intentions into the local economy and community.
Source – HighTimes