This shouldn’t be a surprise to anyone. Colorado, one of the first states to legalize recreational use of Marijuana, has become the first state to collect more tax revenue from the sale of Marijuana than the sale of alcohol.
For the fiscal year ending on June 30th, Colorado raised $70 million in tax revenue from the sale of Marijuana and $42 million from the sale of alcohol. Almost twice as much.
The tax revenue is so good that Colorado implemented a tax holiday on Sept 16th. Mason Tvert, director of communications for the Marijuana Policy Project stated, “Marijuana taxes have been incredibly productive over the past year, so this tax holiday is a much-deserved day off,” Tvert said. “This will be the one day out of the year when the state won’t generate significant revenue. Over the other 364 days, it will bring in tens of millions of dollars that will be reinvested in our state.”
The tax holiday saved shoppers about $20 an ounce, but the retailer will save over $300 per pound. One grower told ABC he probably saved about $45,000 before lunch.
Colorado’s total revenue was so high for the fiscal year that Colorado is also looking at giving some of the money back. Each year the state estimates the total revenue expected from taxes. This number effectively serves as a cap, so residents of that state may get a little gift in next year’s tax return.