On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

420 with CNW — A Brief Analysis of Colorado’s Cannabis Tax Revenue

In the year 2012, voters in the state of Colorado legalized adult-use cannabis and approved Amendment 64, which made it the first state in the country to have a legal recreational cannabis market.

Since then, Colorado has made more than $10 billion in total cannabis sales. In 2020, while other industries suffered at the hands of the coronavirus pandemic, cannabis sales increased significantly in the state.

In January this year, cannabis sales topped $180 million, which set a new record. In the last six years, the state has collected more than $1.5 billion in fee revenues and cannabis taxes. This revenue stream was a key selling point for voters in the state when the legalization measure was being passed in 2012. Many are curious to know how these monies have been allocated.

According to Amendment 64, the state is obligated to collect a 15% special sales tax when marijuana changes possession from cultivator to seller and a 2.9% sales tax from both recreational and medical sales. The 2.9% tax on medical cannabis is directed to the Marijuana Tax Cash Fund.

The amendment also has a clause that states that 90%, or the first $40 million, accumulated is to be allocated to a capital construction grant program, where different education providers, districts and schools can apply for funds to renovate existing facilities or construct new buildings.

On the other hand, the 15% excise tax is directed to the general fund of the state of Colorado, with a portion being allocated to the State Public School Fund, which is managed by the Department of Education. The remaining amount is allocated to the Marijuana Tax Cash Fund.

Since legal retail sales began in 2012, more than 15% of the budget of the Marijuana Tax Cash Fund has been directed to education initiatives. However, while cannabis tax dollars help fund construction and school maintenance, they don’t address per pupil funding, with very little of these taxes being directed to school operating budgets for school supplies, books and teacher salaries.

In addition, different jurisdictions in the state allocate cannabis tax revenues differently. For instance, in the period between 2014-2019, Denver allocated more than $15 million to youth prevention with more than $25 million in tax dollars also going to cannabis enforcement and regulation. Additionally, $19 million, over $3 million and more than $15 million was allocated to city capital improvements, opioid intervention and affordable housing respectively.

Legislators in the state are being pushed to change how tax revenue is used annually and introduce legislations to establish new programs.

While a lot of attention may be directed towards the tax benefits of the cannabis sector, it is also worthwhile to be cognizant of the work done by companies such as RYAH Group Inc. (CSE: RYAH), which is developing cutting-edge IoT dose-measuring devices with the potential to take plant medicine (medical cannabis, for example) to a whole new level of precision.

NOTE TO INVESTORS: The latest news and updates relating to RYAH Group Inc. (CSE: RYAH) are available in the company’s newsroom at https://cnw.fm/RYAH

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

CNW420 is part of the InvestorBrandNetwork.

Archives

Select A Month

Official NewsWire Relationships

Alternative Products Expo Benzinga Cannabis Capital Conference Cannabis Business Summit & Expo 2019 Cannabis Drinks Expo Cannabis World Congress & Business Exposition Cannexpo Marigold PR MjMicro Conference New England Cannabis Network O'Cannabiz Conference & Expo Tether BudTender Tether BudTender Appreciation Week

CannabisNewsWire Currently Accepts

Bitcoin

Bitcoin

Bitcoin Cash

Bitcoin Cash

Doge Coin

Dogecoin

Ethereum

Ethereum

Litecoin

Litecoin

USD Coin

USD Coin

Contact us: 303.498.7722