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[GK86]

Link to article.

Link to report.

In the three-and-a-half years since the state began allowing adults to purchase marijuana for recreational use, cannabis has contributed more than half a billion dollars in tax revenue to both state and local coffers.

That's according to a report released Wednesday by the Denver-based marijuana consulting firm VS Strategies. Based on data from the Colorado Department of Revenue, the firm tabulated that cannabis-related taxes from 2014 through mid-2017 totaled $506,143,635.

That includes the taxes on purchases of marijuana for recreational or medical use, as well as fees paid by cannabis businesses. The tax figure is substantially more than some experts predicted in 2012 when Colorado voters approved Amendment 64, which legalized recreational marijuana. At that time, some analysts projected the state would net between $5 and $22 million a year in taxes.

A majority of money has gone to fund K-12 education (even with that, Colorado's education funding badly lags behind most of the rest of the country). Amendment 64 requires the first $40 million in tax revenue be allotted for school construction.

The remainder of the state's share of cannabis taxes helps finance health care, health education, law enforcement and substance abuse prevention and treatment programs.

Local governments, which tax marijuana separately from the state, have used their share of the funds in a variety of ways.

Pueblo County, for instance, used some of the cash to start what's believed to be the first cannabis-tax-funded college scholarship program. In 2017, it distributed $420,000 among 210 students.

The Denver-area city of Edgewater, which has six marijuana dispensaries and a population of 5,300, has used its cannabis windfall to upgrade outdated infrastructure. Cannabis taxes have generated more than $1.4 million for the city, which CBS Denver reports makes up 20 percent of Edgewater's annual budget.

 

[NandoGip]

Marijuana drug trades been funding communities for a long time

This report is the definition of the gov't always being late AF

 

[CountAntonius]

far out

 

[ResidentWeevil13]

Put it towards a state-wide single payer healthcare system

 

[xxracerxx]

I take solace in knowing that this probably makes Jeff Sessions extremely angry.

 

[Amory]

I dont use pot anymore, but I cant wait for the revenue bump Massachusetts gets when we start selling here

 

[Gallbaro]

But is it like other sin taxes? Basically a tax on the poor?

 

[Dark Cloud]

Why doesn't my state do this...

 

[Chichikov]

I still hate consumption taxes and taxes that their revenues are designated to go toward specific goals, but it sure is better than spending money trying to enforce that stupid prohibition.

p.s.

At that time, some analysts projected the state would net between $5 and $22 million a year in taxes.

I'll take analysts who never been to Boulder for $200.

 

[Gordon Shumway]

Tax dat shit..who knew?

 

[Pizza]

Hey Texas, take notes.

 

[Baconmonk]

They just raised the tax for recreational to 29%, and most people I've spoken to are totally fine with paying it as well. A flooded market of growers has driven prices way down anyhow. The way Colorado has handled the industry is a great template for the coming states to form their regulations around.

 

[Amory]

I still hate consumption taxes and taxes that their revenues are designated to go toward specific goals, but it sure is better than spending money trying to enforce that stupid prohibition.

p.s.

I'll take analysts who never been to Boulder for $200.

Whats the problem with a consumption tax for weed? It's a concession that makes opponents in a state feel a little better and the money can go towards beneficial things for everyone. Taxed legal weed available in controlled environments is a win win

 

[VendettaRed07]

CT for fucks sake...

 

[Somnid]

But is it like other sin taxes? Basically a tax on the poor?

What kinda person do you think goes into a store to shop for marijuana?

 

[Nekofrog]

imagine if the government hadnt been so short sighted for so long

But is it like other sin taxes? Basically a tax on the poor?

The biggest spenders on legal recreational marijuana are middle and upper class people with disposable income.

we buy it like water in my house

 

[Gallbaro]

What kinda person do you think goes into a store to shop for marijuana?

I can honestly say I do not think my experiences in Amsterdam provide any insight as to who is shopping in Colorado.

 

[norm9]

Whats the problem with a consumption tax for weed? It's a concession that makes opponents in a state feel a little better and the money can go towards beneficial things for everyone. Taxed legal weed available in controlled environments is a win win

It's also a medicine, so maybe taxing medicine that patients need isn't cool? I don't know if regular pills and whatnot are taxed.

 

[whytemyke]

But is it like other sin taxes? Basically a tax on the poor?

If the poor don't want this tax then they don't have to smoke weed. You'd be shocked at how little people who don't buy weed end up not paying taxes on weed purchases.

 

[leroidys]

But is it like other sin taxes? Basically a tax on the poor?

Anecdotal, but the people I see in pot shops in Seattle skew towards being extremely well heeled.

 

[Gallbaro]

If the poor don't want this tax then they don't have to smoke weed. You'd be shocked at how little people who don't buy weed end up not paying taxes on weed purchases.

Cigarette taxes really have not done much to deter lower class smoking, the effect was noticeable at the middle and upper classes.

 

[djplaeskool]

SMOKE WEED GENERATE TAX REVENUE ERR'DAY

 

[HStallion]

Cigarette taxes really have not done much to deter lower class smoking, the effect was noticeable at the middle and upper classes.

Isn't this partly because cigarette companies still go after minority communities aggressively?

 

[xxracerxx]

I can honestly say I do not think my experiences in Amsterdam provide any insight as to who is shopping in Colorado.

I mean, who did you see buying weed in Amsterdam? If it was well dressed people that are relatively well off...guess what, that is who is buying pot in legal states.

 

[Galactic Barret]

And the Federal Government doesn't want legalization, why?

Oh, yeah. Keeping the Prisons full and preventing Minorities from making money.

 

[Gallbaro]

I mean, who did you see buying weed in Amsterdam? If it was well dressed people that are relatively well off...guess what, that is who is buying pot in legal states.

I certainly was not dress well.

 

[SocksAndShoes]

In 2017, it distributed $420,000 among 210 students.

 

[old manatee]

goddamn Colorado's been high as fuck for a while now. Somebody should put on a pot of coffee.

 

[numble]

I still hate consumption taxes and taxes that their revenues are designated to go toward specific goals, but it sure is better than spending money trying to enforce that stupid prohibition.

p.s.

I'll take analysts who never been to Boulder for $200.

What is wrong with a hotel or bed tax? The local city does not collect corporate or individual income tax, that goes to the federal or state government (and sometimes the state decides there should be no corporate tax). Tourists use infrastructure as much or if more than locals.

Most developed countries have been able to design a VAT system to support healthcare, social welfare programs and income redistribution programs.

Multinational companies and rich individuals can avoid income taxes very easily. It is harder to avoid VAT and consumption taxes.

 

[led4lyfe]

Lived in Denver last year; beautiful city and I believe the weed market has made the city and state even better.

 

[Saganator]

The biggest spenders on legal recreational marijuana are middle and upper class people with disposable income.

we buy it like water in my house

No lies detected. Whenever I see an older person in the store I go to, they go all out. Edibles, large quantities of multiple strains, oils, it's crazy.

Also, the store I go to is right by a Costco, every time I'm there it's packed with soccer moms and other types of people you wouldn't expect to see in there. It's gotten to the point where there there is no type of person you don't expect to see there, everyone loves weed!

 

[Violence Jack]

One of the many things I love about this state. I don't smoke, but good to see it paying off.

 

[Branduil]

Cigarette taxes really have not done much to deter lower class smoking, the effect was noticeable at the middle and upper classes.

Well cigarettes are addictive, so...

 

[Lowmelody]

Make that green, smoke that green.

 

[Goofalo]

I like how when I go back to Denver to see my folks, the dispensaries give me the medical price due to my diagnosis.

 

[Malleymal]

I chipped in to this tax last weekend when I visited Denver and Boulder last week. I saw the tax and yea this all makes sense.

 

[Xisiqomelir]

o7 Gaborn

We miss you buddy

 

[SoRuffShoNuff]

That much in revenue and they are still behind in education funding? How?

 

[Extollere]

Legalize marijuana. Use the tax revenue to fund universal health care.

 

[Maximo]

Would be nice here in Australia...alot of money to be made and able to be put back into the country.

 

[Goofalo]

That much in revenue and they are still behind in education funding? How?

Bill Owens was the start of the defunding of public education in Colorado.

The NIMBY conservative/libertarian suburban voters won't pass bond issues to fund school and the Republicn state legislature have been killing funding for higher ed and public school for decades now.

Colorado isn't all hippies and weed. It's mostly NIMBY Helen Lovejoys

 

[ShdwDrake]

Glad to contribute!

 

[Miggytronz]

Come on Virginia!!!!!! 😫

 

[dabig2]

Pretty great. I wonder how much of an effect legalization has had on Colorado's tourism industry.

Makes you wonder how much money the country has missed out on a whole since the ban back in the 30s. Marijuana/hemp was already on its way to becoming the first billion dollar cash crop way back when. Fucking depressing to think about, honestly - combined with the war on drugs, wholesale destruction of certain communities over it, and the expansion of private prisons.

 

[Maxim726X]

It's also a medicine, so maybe taxing medicine that patients need isn't cool? I don't know if regular pills and whatnot are taxed.

Is medical marijuana taxed?

 

[Goofalo]

Is medical marijuana taxed?

At a much lower rate. 3% last time I went home.

 

[ChouGoku]

I sell weed in Colorado, so im doing my part

 

[Stinkles]

I live in seattle and most people died after the legalization and everything is burning and soaked in blood.

 

[Velcro Fly]

Illinois you better get on that. Legalized recreation marijuana should be a campaign issue for governor because of how much revenue it can generate.

 

[Earthbound64]

A majority of money has gone to fund K-12 education (even with that, Colorado’s education funding badly lags behind most of the rest of the country)

So even after an increase of $250,000,000 over 5 years (o ~$50,000,000 per year), their educational funding still "badly lags behind most of the rest of the country"?
That's bad.