Tomorrow a bill to tax and regulate marijuana will be introduced in the Rhode Island House. In the meantime, says Jared Moffat, Director of Regulate Rhode Island, the following press release from the Marijuana Policy Project, the nation’s largest marijuana policy organization, should put to rest, “any claims from opponents that marijuana tax revenue is not meeting expectations in Colorado.”
Governor Gina Raimondo‘s 2016 Budget proposes a tax on medical marijuana, effectively taxing a legal prescription medication. It might behoove our state to tax and regulate recreational marijuana, and reap millions in taxes instead.
Here the press release:
Colorado’s regulated marijuana system generated more than $135 million in revenue for the state in 2015, including more than $35 million for school construction projects, according to the Colorado Department of Revenue.
There were just under $588 million in adult-use marijuana sales in Colorado from January-December 2015, producing approximately $109.1 million in tax revenue in addition to $4.7 million in license and application fees. The state’s regulated medical marijuana system produced more than $11.4 million in tax revenue and $9.8 million in license and application fees.
In 2014, the state’s regulated marijuana system raised just over $76.1 million in total revenue, including about $56.2 million from adult-use marijuana tax revenue and fees and $19.9 million in medical marijuana tax revenue and fees.
“There are hundreds of millions of dollars in marijuana sales taking place in every state,” said Mason Tvert, the Denver-based director of communications for the Marijuana Policy Project. “Colorado is one of the few where those sales are being conducted by licensed, taxpaying businesses.”
Adult-use marijuana sales in Colorado are subject to the state’s standard 2.9% sales tax, plus a 10% special state sales tax. Additionally, wholesale transfers of adult-use marijuana are subject to a 15% state excise tax. The first $40 million raised annually by the 15% excise tax is earmarked for public school construction projects. The excise tax raised just over $35 million in 2015, up from about $13.3 million in 2014.
“These tax revenue figures are truly impressive,” Tvert said. “Just six years ago, Colorado received zero dollars in tax revenue from the sale of marijuana in the state. Now it’s raising more than $100 million annually with tens of millions of dollars directed toward public school improvements.
“The additional tax revenue far exceeds the cost of regulating the system,” Tvert said. “Regulating and taxing marijuana has been incredibly successful in Colorado, and it represents a model for other states to follow. These numbers should put to rest the claims we keep hearing from opponents that marijuana tax revenue has fallen short of expectations in Colorado.”