Tuesday, October 6th7.9°C

Colorado officials report roughly $2M in recreational pot taxes in January, 1st month of sales

DENVER - Colorado made roughly $2 million in marijuana taxes in January, state revenue officials reported Monday in the world's first accounting of the recreational pot business.

The tax total reported by the state Department of Revenue indicates $14.02 million worth of recreational pot was sold. The state collected roughly $2.01 million in taxes.

Colorado legalized pot in 2012, but the commercial sale of marijuana didn't begin until January. Washington state sales begin in coming months.

The pot taxes come from 12.9 per cent sales taxes and 15 per cent excise taxes. Voters approved the pot taxes last year. They declared that the first $40 million of the excise tax must go to school construction; the rest will be spent by state lawmakers.

Colorado has about 160 state-licensed recreational marijuana stores, though local licensing kept some from opening in January. Local governments also have the ability to levy additional pot sales taxes if they wish.

Monday's tax release intensified lobbying over how Colorado should spend its pot money. Budget-writers expect the nascent marijuana industry to be extremely volatile for several years, making lawmakers nervous about how to spend the windfall.

Budget-writing lawmakers joke that plenty of interests have their hands out to get a piece of the pot windfall.

Gov. John Hickenlooper has already sent the Legislature a detailed $134 million proposal for spending recreational and medical marijuana money, including new spending on anti-drug messaging to kids and more advertising discouraging driving while high.

State police chiefs have asked for more money, too.

"The whole world wants to belly up to this trough," said Sen. Pat Steadman, a Denver Democrat who serves on Colorado's budget-writing Joint Budget Committee.

Other countries also are watching Colorado, which has the world's first fully regulated recreational marijuana market. The Netherlands has legal sales of pot but does not allow growing or distribution. Uruguay's marijuana program is still under development.

Colorado's pot revenue picture is further complicated by the state's unique budget constraints, known as the Taxpayers' Bill of Rights.

The Bill of Rights not only requires voter approval for tax increases, it limits budget-writers when those taxes earn more than the figure posed to voters. Last year's pot vote guessed that the taxes would produce $70 million a year, and it's not clear what lawmakers can do with tax money that exceeds that figure.

Colorado's JBC plans a Wednesday briefing with lawyers to lay out their options for spending pot taxes beyond $70 million.

"There probably is a tendency to want to just grab on to this revenue from marijuana and feed my own pet projects, and I don't think it's going to be that simple," said Sen. Kent Lambert, R-Colorado Springs and another JBC member.

Colorado's 2014-15 budget is under debate now and does not include any anticipated recreational marijuana taxes.


Kristen Wyatt can be reached at http://www.twitter.com/APkristenwyatt

The Canadian Press

Read more Business News

Recent Trending

Today's Market
S&P TSX13635.80+83.60
S&P CDNX535.98+6.07
S&P 5001977.87-9.18
CDN Dollar0.7667+0.0023
Natural Gas2.471+0.021

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.24+0.02
Metalex Ventures0.055-0.005
Russel Metals23.08+0.57
Copper Mountain Mining0.55+0.05
Colorado Resources0.07-0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.09-0.00
Decisive Dividend Corp3.06-0.43
Diamcor Mining0.90+0.00



24030627609 Westkal Road
4 bedrooms 3 baths
more details
Click here to feature your property
Please wait... loading

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council