Legal Marijuana: 9 Charts You Need to See…
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On January 1, 2014, Colorado became the first state to legalize the sale and possession of marijuana for recreational use…
One of the main arguments in favor of doing so was that it would “bolster Colorado’s economy with significant tax revenue and job creation…”
On February 18, 2014, Colorado Governor John Hickenlooper submitted his official budget request for the upcoming fiscal year beginning July 1, 2015…
Among other things, his request revealed that tax revenues from marijuana sales are exploding…
In fiscal year 2013, which ends on June 30th, Colorado will earn an estimated $51 million in tax revenue from the sale of marijuana.
In fiscal year 2014, the first full year of recreational sales, the figures is expected to increase to $134 million.
Question: What caused revenue projections to skyrocket?
Answer: The addition of recreational sales beginning January 1, 2014.
You can see why this is when you look at the breakdown in tax revenue from medical and recreational sales.
Portion of tax revenues from medical marijuana sales: 12%
Portion of tax revenues from recreational marijuana sales: 88%
Medical Marijuana Sales
Recreational Marijuana Sales
Where exactly is the revenue coming from?
$45 million will be spent on programs to prevent and deter marijuana use by children…
That remains to be seen.
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