Colorado just surpassed $400,000,000 in legal cannabis sales in just 12 months

Colorado’s cannabis industry has once again broken its own sales records. The cannabis retail sales tax, retail cannabis use tax, and state sales tax generated $423 million in revenue in 2021.

Since its inception in 2014, Colorado’s recreational cannabis industry has steadily evolved into what it is today. It records new amounts of revenue generated each year, such as: B. Updated sales data in Tax and Fee Receipts.

Two weeks ago, the state’s tax office revealed a new record set in the state’s total annual cannabis sales. The agency made this announcement on its website and all of its social media platforms. The statement said Colorado surpassed $2 billion in tax and fee revenue. The state has sold about $12 billion in cannabis sales since it began operations to date. The biggest record broken was the collection of $423 million in revenue from total sales made during the year. In 2020, that total amount generated was $387 million (which was also a new record alert at the time).

Breakdown of Sales

The Colorado Department of Revenue (DoR) issued a detailed press release showing that the state has collected at least $2,019,005 in tax and fee revenue since February 2014. It reached $30,608,000 in December 2021 alone, while a total of $423,486,053 was generated between January and December 2021.

Data released for November sales showed that $158,460,549 was generated.

Released numbers show a gradual decline in cannabis sales and prices over the final months of the year, beginning in October. Both sales and prices fell below regular rates. For example, Westword reported that the cost per pound of cannabis flower fell 27.5% in October 2022 — from $1,300 to $945. while the average market price for the same period in 2020 put the price per pound for the same smokable products at $1,720. Denver pharmacies accounted for a larger portion of sales for the state.

The above figures are from state sales tax. Under Colorado cannabis law, a 15% excise tax and a 15% wholesale excise tax must be deducted from monthly marijuana sales. Currently, the adult market is not affected by general sales tax laws.

The state’s total tax revenue is $2 billion, the third highest in the country. Meanwhile, the states of California and Washington have generated $3.1 billion and $3.3 billion in tax revenue, respectively, over the years. California has the highest sales tax at over 40%, while Washington is as high as 39%.

We expect official sales numbers for the annual cannabis sales data for both the recreational and medical sectors to be released before the end of the first quarter.

Distribution of Earned Income

The Colorado state government is entitled to 90% of all marijuana tax revenue generated each month and year. At the same time, the remaining 10% is allocated to the local government. Government revenues are further split into various funds, including the state’s general fund, the marijuana tax cash fund, and the state’s public school fund.

The Building Excellent Schools Today (BEST) fund is one of the proposed development projects to be funded from the state’s wholesale tax revenue. According to reports, $40 million has been allocated for the first phase of the project, which includes building new schools in different regions of the state.

Colorado’s cannabis industry for adult use

Karen O’Keefe, director of marijuana policy projects, confirmed that the state’s cannabis industry is growing and seeing a steady inflow of funds for various projects in the state. She pointed to the multiplier effect of the funds on the economy. This is described as having more than the invested capital where the state government and entrepreneurs have their investments in the cannabis dispensaries, the tax revenue and the jobs provided. Consumers with cash in their wallets are coming to stores to spend the money on cannabis products.

O’Keefe explained that economists view this situation as a long-term investment, where a dollar is more or less than two or three dollars in the stores. She also added that Colorado’s recreational cannabis industry has created over 35,000 jobs and at least 1,000 new businesses.

She said Colorado actively reinvests a significant portion of the revenue it generates back into the community. Areas disadvantaged by the state’s failed drug war are favored over others. O’keefe claims that this way more people will be interested in seeking or creating job opportunities in the industry. Places that have borne the brunt of marijuana bans and disproportionate arrests are being boosted with better schools, cheaper college tuition and newer businesses opening up to employ local residents.

Colorado has one of the best cannabis industries in the world. Year after year, the industry is looking for more innovative ways to improve itself and generate more profit for the state’s economic growth.

In 2021, over 1,300 non-violent cannabis offenders charged with possession of less than two ounces were pardoned, and several others had their cannabis crime records erased or erased. Governor Jared Polis signed an executive order to that effect.

Psychedelic Decriminalization in Colorado?

Reports are mounting across the state of two potential ballot measures proposing decriminalization of psychedelics in the state. One of the bills focuses only on psilocybin, while the other aims to legalize various psychedelic substances such as DMT, mescaline, psilocin, psilocybin and ibogaine. The coming months will show whether this will be passed in the state parliament.

final remark

The most recent marijuana sales report for Colorado’s recreational market considered the total sales made by each county in the state. The published report shows only the government tax and fee revenue entered into the government accounting system throughout the year.

The Ministry of Finance announced that the official data will be released before March 2022. Additional relevant information and reports can be found on the various CDOR Office of Research and Analysis (ORA) websites. The state’s medicinal cannabis industry is also thriving!

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