Colorado Generates $44 million in New sales Taxes and Excise Taxes from Recreational Pot

Colorado Generates $44 million in New sales Taxes and Excise Taxes from Recreati

Making Marijuana legal does little to control the black market or solve problems of a state budget. On Tuesday, the year-end report has been released and tallied about $44 million in new sales taxes and excise taxes from recreational pot.

In the world, Colorado was the first government to regulate marijuana production. In 2012, Colorado voters legalized pot and at the same time only Washington also did the same. Colorado began recreational weed sale in January 1, 2014. The first month of sales made only $1.6 million for the state. By December, that number was $5.4 million.

The retail sales in Washington did not begin until June 2014. Different tax rates have been set by Washington and Colorado and it was based on a percentage of the pot’s value. Pot regulators of Colorado have worked hard to set up a wholesale pot price in order to gather excise taxes.

“Taxing a percentage of price may simply not work”, said Pat Oglesby, a former congressional tax staffer who now studies marijuana’s tax potential at the Chapel Hill, North Carolina, Center for New Revenue.

Still, Alaska and Oregon are putting efforts to work on retail regulations. These two are going to tax marijuana by weight, like how tobacco is taxed. Every state in the union that is liberal to conservative has a market for marijuana. Legalizing pot does not give assurance that those consumers will leave the black market.

Medical marijuana is not taxed in Washington state and in Colorado it is but all adults are permitted to grow up to six plants on their own. It means that the states’ new marijuana markets had face legal competition from starting.


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