$900M+ in CO Marijuana Sales Expected

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.

Colorado expects recreational and medical marijuana sales to reach at least $900 million during the state’s next fiscal year, according to an extrapolation of tax revenue estimates.

The figure is tied to a budget proposal by Gov. John Hickenlooper this week estimating that the state will collect nearly $80 million in sales taxes from recreational shops and medical marijuana dispensaries from July of this year through June 2015.

Based on estimates in the proposal, recreational stores would generate between $550 million-$600 million in sales and MMJ dispensaries would bring in around $345 million in revenues during that period. Colorado collects a 12.9% tax on recreational sales and a 2.9% tax on medical marijuana sales.

The state’s estimates offer yet another indication that Colorado’s recreational marijuana market is burgeoning. Many estimates now signal that the market could approach $1 billion sooner rather than later.

Colorado is clearly anticipating a financial windfall.

Aside from the $80 million in sales taxes, the governor’s office expects the state will collect another $46 million in recreational cannabis excise taxes (assessed when marijuana is transferred from a cultivation site to a retail store) and another $8 million in other medical and retail fees, including applications and licenses. The state’s expected total haul in its next fiscal year: $134 million.