colorado department of revenue

Colorado: Pot Shop Sales Already Total $270 Million In 2016

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By Derrick Stanley
Hemp News

The Colorado Department of Revenue just released figures that show pot shops in the state have sold more than $270 million in marijuana and related products in the first three months of 2016.

The licensed stores sold more than $33 million in medical cannabis and more than $55 million in recreational marijuana in March, the latest month for which the department has released tax figures.

March 2016 recreational marijuana sales are up 30 percent from March 2015.

"Marijuana sales remain strong," said Christian Sederberg, an attorney for the cannabis industry. "As the regulated system continues to work, we're also on pace to have over $40 million in excise taxes, meaning there could be additional taxes available from the excise tax to be used for something beyond the public school construction fund."

Colorado marijuana shops sold more than $699 million of product in 2014 and over $996 million in 2015. Totals for taxes and license fees have grown as well, from $76 million in 2014 to $135 million in 2015.

Colorado: Regulated Marijuana System Generated More Than $135 Million In Revenue For State

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Revenue Includes More Than $35 Million for School Construction Projects

Total revenue raised from 2015 surpassed original projections and far exceeded the costs associated with regulating the system

Colorado’s regulated marijuana system generated more than $135 million in revenue for the state in 2015, including more than $35 million for school construction projects, according to the Colorado Department of Revenue.

There were just under $588 million in adult-use marijuana sales in Colorado from January-December 2015, producing approximately $109.1 million in tax revenue in addition to $4.7 million in license and application fees. The state’s regulated medical marijuana system produced more than $11.4 million in tax revenue and $9.8 million in license and application fees.

In 2014, the state’s regulated marijuana system raised just over $76.1 million in total revenue, including about $56.2 million from adult-use marijuana tax revenue and fees and $19.9 million in medical marijuana tax revenue and fees.

“There are hundreds of millions of dollars in marijuana sales taking place in every state,” said Mason Tvert, the Denver-based director of communications for the Marijuana Policy Project (MPP). “Colorado is one of the few where those sales are being conducted by licensed, taxpaying businesses.”

Adult-use marijuana sales in Colorado are subject to the state’s standard 2.9 percent sales tax, plus a 10 percent special state sales tax. Additionally, wholesale transfers of adult-use marijuana are subject to a 15 percent state excise tax.

U.S.: Robust Growth, Consumer Safety, New Regulations Are Cannabis Trends For 2016

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With Colorado marking the two-year anniversary of legalization for the adult-use/recreational market, the cannabis industry predicts new milestones in both Colorado and the United States in 2016. With a burgeoning industry on the precipice of enormous growth, education and consumer safety will be a top priority for cannabis leaders as the industry expands throughout the country.

“This year, the cannabis industry made great strides in protecting and educating the consumer,” noted Peggy Moore, chair of Cannabis Business Alliance and owner of Love’s Oven Bakery. “The industry heard early on after legalization for the adult-use market about concerns of unintended access as well as overconsumption.

"We take our role in ensuring public safety very seriously," Moore said. "As such, we are working to bring best practices to the entire industry to ensure that all consumers are educated about how and when to consume cannabis, and how to avoid cases of accidental ingestion. The industry has embraced and furthered certified child resistant packaging, safety warnings on labeling and product testing, and will continue to promote this and other industry best-practices in 2016.”

The Cannabis Business Alliance (CBA) offers insight into the rapidly evolving cannabis industry and an outlook for 2016:

Colorado: Marijuana Tax For Schools Hits Record; Exceeds 2014 Total

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By Steve Elliott
Hemp News

Just-released marijuana tax data from the Colorado Department of Revenue shows that schools in the state received more money from the state's cannabis excise tax in the first five months of 2015 than they did all year in 2014.

"It sounds very encouraging," said state Sen. Pat Steadman (D-Denver), reports Ricardo Baca at The Cannabist. "Voters wanted the school capital construction program to benefit, and despite some bumps in the road at the beginning, it looks like what was intended is coming to fruition."

Recreational marijuana is taxed three ways in Colorado: the standard 2.9 percent sales tax, a special 10 percent special cannabis sales tax, and a 15 percent excise tax on wholesale marijuana transfers.

The excise tax money grew from $2.5 million in March to $3.5 million in May. It brought it $13.6 million through May 2015, more than the $13.3 million it drew in all of 2014. The two main reasons for the jump are more marijuana stores opening and a one-time tax-exempt transfer which benefited the shops.

Recreational marijuana sales stayed roughly the same in Colorado between March and May, totaling $42.4 million in March and $42.5 million in May. May's medical cannabis sales in Colorado totaled $32.4 million, their highest since October 2014.

Colorado: Recreational Marijuana Passes Medical Marijuana

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By Steve Elliott
Hemp News

Retail recreational marijuana sales, for the first time, passed medical marijuana sales in Colorado in July.

Recreational pot sales had lagged behind medical sales since the legal marijuana shops created by legalization measure Amendment 64 opened on January 1, reports Katy Steinmetz at Time. But according to tax figures from the Colorado Department of Revenue, recreational has pulled into the lead.

During July, Colorado got $838,711 from a 2.9 percent tax on medical marijuana, meaning patients spent about $28.9 million at dispensaries. Meanwhile, the state took in $2.97 million from a 10 percent sales tax on recreational marijuana, putting those sales at about $29.7 million, according to Ricardo Baca at The Cannabist.

The margin, though less than $1 million, represents a victory of sorts for advocates of recreational legalization, who have argued it will be profitable for the state.

"Most adults use marijuana for the same reasons they use alcohol," said Mason Tvert, communications director for the Marijuana Policy Project (MPP). "Now that it's a legal product, they are choosing to access it in a similar fashion."

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