Colorado Gov. John Hickenlooper has scaled back his cannabis tax revenue estimates by about 15%, saying he wants to take a more conservative approach amid wildly different market projections.
The governor said he now expects the state to bring in roughly $114 million in fees and taxes tied to recreational and medical cannabis in the fiscal year that starts in July, compared with an estimate he made in February of $134 million.
The projections changed after Colorado reported cannabis tax data for January, which provided the first real glimpse of the recreational market. While the numbers were strong – especially considering that only a handful of recreational stores were open the entire month – the state now wants to play it safe and plan its budget based on lower estimates.
All indications are that sales are strong and have continued to grow rapidly, so in the end his initial projection could prove accurate.