Colorado Marijuana Tax Structure Questioned

Despite a record-setting month for recreational marijuana sales in Colorado this past June, tax revenues from retail cannabis transactions are 60% below what lawmakers initially expected by now.

As a result, one state legislator says it might be time to take another look at the tax structure for both recreational and medical marijuana.

Early estimates put Colorado’s tax haul from recreational marijuana sales at more than $33 million through the first six months of the year. But the final tally was only $12 million.

A large reason for that could be because medical marijuana is much cheaper than recreational cannabis, according to a report prepared for the Colorado Department of Revenue.

“There’s some real impact that the medical marijuana market is having on the recreational marijuana market,” state Rep. Dan Pabon, D-Denver, told The Denver Post. Pabon is heading up a legislative committee that’s examining marijuana tax revenue. The group held its first meeting on Tuesday.

A new projection from two months ago estimated that Colorado will bring in just $30.6 million in recreational marijuana taxes for the 2014-2015 fiscal year, far short of the $100 million that the governor’s office initially forecast.

3 comments on “Colorado Marijuana Tax Structure Questioned
  1. Thomas Lee (@doctordns) on

    Seems to me the Colorado folks are a) greedy and b) are over regulating things. If licenses to grow and sell were eaiser to get, sales would be higher. And by taxing so high, they make the black market product more attractive.

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  2. L.G.B. on

    I agree with Thomas, well stated. I moved here from another Non- MMJ sate. I bought an empty house that had been on the market for a while. We are spending money with local contactors to bring house to where it should be. I have a decent retirement income, but not rich. I am Disabled Veteran from the Viet-nam war. So I came to Colorado to live my life out as peacefully as I can. Having being born in Wyoming I love the west. Raised in Oklahoma I do not miss the Heat, Humidity, Tornados, or the bone chilling cold blown by the un relentless wind, and rarely any snow to see just dead brown and gray colors. That’s why I love living in southern Colorado’s high desert, with a mountain view. I think of it as God’s country. So in conclusion I wish you would realize what MMJ has done for your wonderful state, and in turn what your Great state has done for Me, and people like me when you think of redoing your tax structure. Thanks Luther Gale Baker

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