Colorado’s marijuana tax revenues were higher than those from alcohol or cigarettes in the past fiscal year. $280 million of cannabis tax dollars went to various government programs and services, including K-12 education and healthcare.
The nonpartisan Legislative Council Staff of Colorado (LCS), released an analysis on Wednesday that showed marijuana sales still contributed more money to Colorado’s state budget than any other substance regulated.
Tax revenue generated by marijuana was nearly equal to the amount of money the state earned from cigarettes and alcohol combined in the last year. In Fiscal Year 2022-2023, cannabis tax revenue also exceeded that of non-cigarette products tobacco ($61 million) or nicotine products ($56 millions).
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The LCS Economic Analysis also details the state’s cannabis tax revenue spending, including how money is divided between several programs such as substance abuse treatment, early childhood reading, youth mentoring and bullying prevention, training for law enforcement, affordable housing and research, and illicit market interdiction.
Here is a list of examples on how cannabis revenue has been spent in the current fiscal period:
- K-5 Pilot Program for Social and Emotional health: $2.5 Million
- $1 Million for School Bullying Prevention and Educational Programs
- Mental Health Services for Juvenile and Adult Offenders: $6 Million
- Grants for Affordable Housing Construction: $15 Million
- Black market marijuana interdiction/state toxicology lab: $4.4 million
- Marijuana impaired driver campaign: 1 million dollars
- Prevention of Substance Abuse: $10.1 Million
- Pesticide regulation and control: $1.2 Million
reports that, “Taking into consideration the statutory distributions and [Marijuana Tax Revenue and Education] allocations, K-12 education received approximately 37 percent of the total spending on marijuana revenue to fund school funding and construction.” The Department of Human Services was allocated about 20 percent of the total marijuana revenue for various programs, such as those focusing on behavioral health and drug addiction.
Via LCS
Revenue comes from two taxes imposed on marijuana for adult use: an excise duty of 15 percent and a special sales tax of 15 percent. Total revenue also includes sales of medical cannabis products which are subjected to a 2.9 % sales tax.
Sales decreased, and the state’s total revenue for Fiscal Year 2018-2019 returned to Fiscal Year 2017-2018 levels.
Via LCS.
It’s not the first time Colorado has seen marijuana tax dollars surpass those of alcohol or cigarettes. Separate analysis conducted last year found that the same trend was observed in Colorado and Washington State for the fiscal years 2021-2022. Eight other states also generated more tax revenue than cigarettes from marijuana during this time period.
In Arizona, in March 2022, the state will generate more tax revenue from marijuana legal sales than it does from tobacco and alcohol when combined.
Last year, Massachusetts released data that showed it was collecting more revenue through marijuana taxes than alcohol. In December 2021 the state collected $51.3 million in alcohol taxes, and $74.2 from cannabis. This was at the mid-point of the fiscal year.
In 2021, Illinois’ cannabis tax revenue surpassed alcohol taxes for the first time. The state collected about $100 million dollars more than it did from alcohol.
An American Psychiatric Association poll conducted last month revealed that adults believe marijuana is significantly less harmful than alcohol, cigarettes and opioids. The respondents said that cannabis was less addictive than alcohol, cigarettes and technology.
A Gallup survey released in this month showed that more than half of Americans had tried marijuanaand now, cannabis is being smoked by more people than cigarettes.
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This month, a Colorado law that allows online marijuana sales went into effect. The new law gives consumers a way to order cannabis after more than 10 years of legalization.
Gov. Jared Polis, (D), also signed a bill that will strengthen marijuana-related protections for working professionals within the state. This codifies an executive order Jared Polis issued last year.
In May, he also signed a bill to create an appropriate regulatory framework for the legal use of psychedelics in accordance with a voter initiative.
In an interview with this month, Polis stated that the state’s efforts to legalize marijuana and psychedelics had resulted in “very positive” experiences . He believes that adults should be able to make their own decisions about drug use.
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The article Colorado Marijuana tax brought in more revenue than alcohol or cigarettes last year, according to a new state report appeared on Marijuana Moment.
