Something for Nevadans to consider while weighing the November ballot issue Amendment 2 that will legalize adult use of marijuana statewide.
What locally based Nevada business sector (besides the hotel and casino industry) can boast a monthly sales record of nearly $122.7 million? In Colorado, July marijuana sales of medical and recreational cannabis did just that, even surpassing the traditional 4/20 marijuana holiday when $117.4 million in cannabis treats were sold. Something for Nevadans to consider while weighing the November ballot issue Amendment 2 that will legalize adult use of marijuana statewide.
The Cannabist Staff at the Denver Post reported data released by the Colorado Department of Revenue monthly report which showed a 27 percent increase in revenue from July 2105 to July 2016. Colorado’s marijuana industry generated $720.4 million through the first seven months of year with medical accounting for $465 million and recreational $255.4 million.
A couple of reasons may explain the increase. A new state law in June allowed tourists visiting Colorado to purchase up to one ounce of marijuana, an increase of the previous quarter ounce per person. As sales increase, prices decline, bringing buyers from the black market into the regulated market. And of course the increase can be explained by summertime fun when people fire up the barbecue or attend festivals and concerts.
The monthly haul surpasses the previous record notched this past April — a month that includes the annual 4/20 marijuana holiday — when $117.4 million of flower, edibles and concentrates were sold. Medical sales accounted for $40.8 million and recreational sales accounted for roughly $76.6 million of April’s total.
The record July and banner year-to-date mean that Colorado’s coffers are getting a little boost.Through July, the industry has resulted in nearly $105.8 million in taxes and fees put toward state funds such as educational capital construction grants and health programs.Those year-to-date totals and the Colorado Legislative Council’s fiscal 2015-2016 revenue forecast of $135 million would only make up a sliver of the state’s $10 billion general fund and wouldn’t be enough to fully fill the $831 million K-12 education funding shortfall, also referred to as the “negative factor,” said Chris Stiffler, economist for the Colorado Fiscal Institute.Colorado is on pace to record more than $40 million in retail marijuana excise taxes, which would then allow for additional funding to be used beyond capital construction, industry observers have said. Stiffler estimates that the marijuana tax revenue eventually will flatten out to around $140 million to $150 million per fiscal year.
Read more at the Denver Post.