Marijuana Tax Collections Booming in Colorado

New source of tax revenue brings in about $5 million in taxes each month.

June 17, 2014

DENVER – According to tax collection data released last week, Colorado sold about $22 million worth of recreational marijuana in April, contributing about $5.3 million into the state’s tax coffers.

These numbers are a new high for the state, representing an increase of about 17 percent from March and about 58 percent from January, the first month of retail marijuana sale, according to an Associated Press report.

At the same time, Medical marijuana continues to far outpace recreational pot sales, according to April figures. Colorado's pot shops sold about $32 million in medical marijuana in April, or about 44 percent more medical pot than recreational pot.

Medical and recreational pot products can be the same, though medical products require a doctor's recommendation and state license before buying. Recreational pot is open to all customers over 21. Medical dispensaries were allowed to start selling to non-patients in January.

Recreational pot is taxed at a much higher rate than medical pot, which is subject only to state and local sales taxes. Recreational pot has an extra 10 percent sales tax to pay for regulation and consumer education, such as don't-smoke-and-drive campaigns. Those sales taxes have raised nearly $7 million since January.

An additional 15 percent excise tax on recreational pot goes to school construction. That fund raised about $735,000 in April, for a total of $1.9 million since January. Counting all taxes, licensing and fees, marijuana has brought in some $17.9 million for the state since January.

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