Colorado Raised More Tax Revenue From Marijuana Than From Alcohol
Categories: On The Farm
Pot is a boon for tax revenues in Colorado, outpacing revenue from alcohol taxes in the fiscal year ending on June 30.
Colorado collected almost $70 million in marijuana taxes during that time, nearly double the $42 million collected from alcohol taxes. The state had a tax holiday for marijuana on Wednesday, an event that was welcomed by consumers and producers alike.
The sales tax holiday underscores the sheer productivity of marijuana taxes, Mason Tvert, director of communications for the Marijuana Policy Project, told the Colorado Spring Business Journal.
“Marijuana taxes have been incredibly productive over the past year, so this tax holiday is a much-deserved day off,” Tvert said. “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.”
Tvert’s prediction isn’t an exaggeration, as Colorado’s data indicated that the 10% retail tax on marijuana and 15% excise tax for large wholesale weed has been fruitful.
On the state’s one-day tax holiday, shoppers saved about $20 an ounce on Wednesday, but distributors saved roughly $300 a pound, with one grower telling ABC he “probably saved $45,000 before lunch.”
For a month-by-month breakdown of Colorado marijuana tax collections, click here.
Many States have not adopted legalization of weed for a variety of reasons. Many regions are entrenched financially where illegal marijuana represents a constant flow of revenues to local cities, courts, jails, and attorneys who don't want to see the money stream dry up. Taxation rather than incarceration sets the smoking public free from fear, slows the "illegal" trade from Mexico and Colorado is seeing both the Business sector boost and tax funds far exceed the incomes from incarceration, and with much more public support:
The success of sites like Ebay and Craigslist gave way to a whole marketplace of resale goods that in the past would have been thrown away. For a long time, internet sales took from local sales and without taxation. This took tax dollars out of the pockets of local communities. Many of those communities raised local taxes, putting more pressure on local businesses. Through legalization of Marijuana, Colorado is alleviating those unintentional budget cuts, and then some. With some oversight, those surpluses could lead to other tax rates going down, and funds back in the pockets of the spending public. In this informative age, the information is out there. Be sure to get involved in your community / State and keep an eye on where funds are going!