Colorado Cannabis: Cannabis Brings in at least $200 Million in Revenue to the State

Colorado Cannabis

One of the biggest arguments put forward for legalizing cannabis is the tax revenue the industry can generate for a jurisdiction. Colorado cannabis laws have permitted recreational use since 2012, and now the state is reaping the benefits of this booming industry.

Colorado Cannabis

From the start of 2018 up until August, Colorado cannabis sales have exceeded $1 billion USD.

And according to the Colorado Department of Revenue, Marijuana Enforcement Division (MED), this sum equates to approximately $200 million in taxes.

This is $200 million the state would not have got otherwise. 

What's more impressive is that the $1 billion figure has never been crossed so early into the year and shows the growing demand for Colorado cannabis. This, in turn, shows the growing revenue this industry is generating.

According to MED, both recreational and medical marijuana sales through to August hit $1,022,245,511. Now the state looks on target to break last year's annual take-in of $1.5 billion in sales.

Edibles Account for Massive Growth

The MED also reported that sales of edible products and concentrates such as CBD oils grew massively this year. With edibles growing 13.8% and concentrates growing 94.6%. All the while, sales of marijuana flower have remained relatively steady.

>> Cannabis Legal in Canada but Won't Be in 2019 if the Conservative Party Wins

A Demographic Shift

Interestingly, it seems the continuing sales growth of Colorado cannabis is linked to shifting demographics of who is buying. 

Many older people have entered this market, looking for options that differ from their usual. Non-psychoactive marijuana oils or CBD as pain alleviation or as a relaxant, for example. 

There seems to be an attitude shift toward cannabis use and its benefits, and more and more people are now enjoying the drug. As a result, Colorado cannabis looks like it will set a new record this year for sales and will add over $200 million in tax revenue to its state.

The UK has flirted with legalizing cannabis precisely for this reason. Tax estimations there run closer to $1 billion.

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