State taxes specific to the production and retail sale of marijuana totaled some $70 million in Colorado over the past year — nearly twice the amount collected for alcohol during this same period.
Financial data released this week by the Colorado Department of Revenue reports that state regulators collected $69,898,059 from marijuana-specific taxes from July 1, 2014 to June 30, 2015. This total includes the collection of $43,938,721 from the imposition of a 10 percent special sales tax on retail sales to adults, and $25,959,338 collected from the imposition of a 15 percent excise tax on wholesale transfers of marijuana intended for commercial sales. In comparison, the state raised just under $41,837,647 from alcohol-specific taxes during this same period, including $27,309,606 from excise taxes collected on spirited liquors, $8,881,349 from excise taxes on beer, and $5,646,692 from excise taxes collected on vinous liquors.
Additional revenue attributable to the imposition of state sales taxes (2.9 percent) on retail sales of cannabis and/or booze were not included in the Department’s calculations. The majority of Colorado voters approved the imposition of cannabis-specific taxes (Proposition AA) in November 2013.
In Washington state, where retail cannabis sales began last summer, data released today estimates that marijuana-specific tax revenues have generated $90 million in the past 15 months.
Changes in marijuana laws are not associated with increased use of the substance by teens, according to data compiled by Washington’ Healthy Youth Survey and published by the Washington State Institute of Public Policy.
State survey results from the years 2002 to 2014 show little change in cannabis consumption by Washington teens despite the passage of laws permitting and expanding the use of marijuana for both medical and recreational purposes during this time.
Self-reported marijuana use fell slightly among 8th graders, 10th graders, and 12th graders during this period. Young people’ self-reported access to cannabis also remained largely unchanged during this time period, although more 8th graders now report that marijuana is “hard to get.”
The passage of voter-initiated legislation legalizing the adult use of cannabis in 2012 is also not to associated with any increase in consumption by youth. Between 2012 and 2014, self-reported lifetime marijuana use and/or use within the past 30 days either stayed stable or fell among all of the age groups surveyed.
The report concluded, “[C]annabis use and access among students in 6th through 12th grades have changed little from 2002 through the most recent survey in 2014.”
The findings are consistent with those of previous assessments acknowledging that liberalizing state marijuana laws does not stimulate increased use among young people.
NORML reviews the top news stories of 2014.
#1 Marijuana Legalization Measures Win Big On Election Day
Voters in Oregon and Alaska decided on Election Day in favor of statewide initiatives legalizing the commercial production and sale of marijuana for adults, while voters in the nation’s capitol and in numerous other cities nationwide similarly decided on local measures to eliminate marijuana possession penalties.
#2 Colorado And Washington Begin Regulating Retail Marijuana Sales
Two states, Colorado and Washington, initiated retail marijuana sales in 2014. Colorado’s program began on January 1. In Washington, state-licensed retail outlets began legally selling cannabis to adults in July.
#3 Congress Enacts Measure Protecting State-Sponsored Medi-Pot Programs
President Barack Obama signed spending legislation into law in December that included a provision limiting the Justice Department’s ability to take criminal action against state-licensed individuals or operations that are acting in full compliance with the medical marijuana laws of their states. The amendment states, “None of the funds made available in this act to the Department of Justice may be used … to prevent … states … from implementing their own state laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”
#4 Congress Moves To Permit State-Sanctioned Hemp Cultivation
Federal lawmakers approved legislation in February permitting state-sponsored hemp cultivation to move forward despite the plant’s federal status as a Schedule I prohibited substance.
#5 Federal Judge Hears Challenge To Cannabis’ Schedule I Status
United States District Judge Kimberly Mueller heard five days of testimony in October in regard to the constitutionality of marijuana’s Schedule I status under federal law. Defense counsel and their experts argued that the scientific literature is not supportive of the plant’s present categorization. Judge Mueller is expected to make her ruling in early 2015.
#6 JAMA: Fewer Opiate-Related Deaths In Medical Marijuana States
The enactment of statewide medicinal marijuana laws is associated with significantly lower state-level opioid overdose mortality rates, according to data published in August in JAMA Internal Medicine. Researchers reported, “States with medical cannabis laws had a 24.8 percent lower mean annual opioid overdose mortality rate compared with states without medical cannabis laws.”
#7 President Acknowledges That Booze Is More Harmful Than Marijuana
Consuming cannabis is less harmful to the individual than is drinking alcohol, President Barack Obama acknowledged in January in an interview with The New Yorker. “I don’t think it (marijuana) is more dangerous than alcohol,” he stated. He added, [W]e should not be locking up kids or individual users for long stretches of jail time.”
#8 Study: Medical Marijuana States Have Fewer Violent Crimes
Medicinal cannabis laws are not associated with any rise in statewide criminal activity, according to data published in April in the journal PLoS ONE. “Medical marijuana laws were not found to have a crime exacerbating effect on any of the seven crime types. On the contrary, our findings indicated that MML precedes a reduction in homicide and assault,” authors concluded. “In sum, these findings run counter to arguments suggesting the legalization of marijuana for medical purposes poses a danger to public health in terms of exposure to violent crime and property crimes.”
#9 NYT Editors Opine In Favor Of Legalizing Cannabis
The New York Times editorial board in July called upon federal lawmakers to end the criminalization of cannabis for those over the age of 21. The paper’s editors opined: “The federal government should repeal the ban on marijuana. … Moderate use of marijuana does not appear to pose a risk for otherwise healthy adults. … [W]e believe that on every level, … the balance falls squarely on the side of national legalization.”
#10 Americans Say Marijuana Is Less Harmful To Health Than Sugar
Americans believe that consuming cannabis poses less harm to health than does the consumption of tobacco, alcohol, or sugar, according to the findings of a Wall Street Journal/NBC News poll released in March. Respondents were asked which of the four substances they believed to be “most harmful to a person’s overall health.” Most respondents said tobacco (49 percent), followed by alcohol (24 percent) and sugar (15 percent).
Oregon and Alaska legalized and regulated the commercial production and sale of marijuana for adults, while voters residing in the nation’s capitol and in numerous other cities nationwide similarly decided this Election Day to eliminate marijuana possession penalties.
Voters in two states decided in favor of a pair of statewide measures to regulate the commercial production, retail sale, and personal use of marijuana by adults. Alaska and Oregon are the third and fourth states to enact regulations on the licensed production and sale of cannabis, joining Colorado and Washington. All four states have enacted their marijuana legalization laws via voter initiative.
Commenting on the new laws’ passage, NORML Deputy Director Paul Armentano said: “The majority of voters in these states, like a majority of voters nationwide, agree that a pragmatic regulatory framework that allows for the legal, licensed commercial production and retail sale of cannabis to adults best reduces the risks associated with the plant’s use or potential abuse. Elected officials in Alaska, Oregon, and elsewhere should welcome the opportunity to bring these common sense and long overdue regulatory controls to the commercial cannabis market.”
Under the new Oregon proposal (Measure 91), adults who engage in the non-commercial cultivation of limited amounts of cannabis for personal use (up to four marijuana plants and eight ounces of usable marijuana at a given time) will not be subject to taxation or commercial regulations. Imposition of the new law will not “amend or affect in any way the function, duties, and powers of the Oregon Health Authority under the Oregon Medical Marijuana Act.” The legalization measure takes effect on July 1, 2015.
Under the Alaska measure (Ballot Measure 2), the adult possession of up to one ounce of cannabis as well as the cultivation of up to six-plants for personal consumption will be legal and untaxed. Commercial production and retail sales of cannabis will be subject to licensing and taxation. Since 1975, Alaskans have enjoyed personal privacy protections allowing for the possession and cultivation of small quantities of cannabis. However, state law has never before permitted a legal market for marijuana production and sales. The initiative becomes law 90 days after the election is certified, which is expected to be in late November.
In California, nearly 60 percent of voters backed Proposition 47, which defelonizes simple drug possession crimes, such as the possession of hashish. Under the measure, Californians with felony records for certain marijuana possession offenses will also be eligible to have their records expunged. Those serving time for felony drug offenses will also be able to petition for resentencing.
In the US territory Guam , 56 percent of voters decided in favor of Proposal 14A, the Compassionate Cannabis Use Act. The new law directs “the Department of Public Health and Social Services to regulate the use of marijuana as treatment for medical conditions.” The Department has up to nine months to provide rules for the territory’s medical marijuana program.
By contrast, a proposed Florida amendment (Amendment 2) fell shy of the 60 percent support threshold necessary in that state to amend the state’s constitution. Fifty-eight percent of Florida voters endorsed the measure, including supermajorities in most every age group except for those voters age 65 and older. Said NORML’s Deputy Director: “This vote wasn’t a rejection of medical marijuana in Florida, but rather an affirmation that most Floridians want patient access to cannabis therapy. NORML hopes that the Florida lawmakers will hear this message loud and clear and take action in 2015 on behalf of the will of the majority of the electorate.”
Municipal voters overwhelmingly decided in favor of depenalizing cannabis on Election Day. In Washington, DC, some 70 percent of District voters approved Initiative 71, which removes criminal and civil penalties regarding the adult possession of up to two ounces of cannabis and/or the cultivation of up to six plants. Adults who engage in not-for-profit transactions of small quantities of cannabis or who possess marijuana-related paraphernalia are also no longer be subject to penalty under this act.
Unlike legalization measures in Alaska, Colorado, Oregon, and Washington, I-71 does not establish a regulatory framework for the regulation of a commercial cannabis market. However, members of the DC City Council are currently considering separate legislation to regulate the commercial production and sale of marijuana to adults. (Because Washington, DC does not possess statehood, all District laws are subject to Congressional approval prior to their implementation.)
Voters in several Michigan cities, including Saginaw (population 51,000), Port Huron (30,000), and Berkley (15,000) also decided in favor of local ballot measures depenalizing offenses involving the adult possession of up to one ounce of marijuana. Michigan lawmakers are anticipated to debate a statewide decriminalization proposal in 2015.
Likewise, voters in South Portland, Maine approved a municipal ordinance eliminating local penalties in regard to the adult possession of up to one ounce of cannabis. Voters in Lewiston, Maine rejected a similar measure.
In New Mexico, voters in Bernalillo and Santa Fe counties decided in favor of advisory questions in support of the decriminalization of one ounce or less of marijuana at a city, county and state level. Bernalillo and Santa Fe counties represent a third of the state’s population.
Finally, in Massachusetts, voters in several state representative districts voted in favor of various nonbinding public policy questions calling on state officials to legalize and regulate cannabis-related commerce.
Support NORML and get “Evergreen”, the exciting documentary that tells the story of how Rick Steves and friends helped legalize marijuana in Washington StateSeptember 23, 2014
Dear NORML members and supporters,
As a board member of NORML I am feeling really good. I’m on a drug policy reform high for four reasons:
- We legalized marijuana in my state (Washington) and in Colorado in 2012. (That gives "the lower 48" a whole new meaning.) And, the Brookings Institution gave it a two-year review and concluded it’s a good thing.
- We plan to legalize in Alaska, Oregon and the District of Columbia this November. (I’ll be spending six days on a 12 city barn-storming tour in Oregon, like I did in Washington two years ago, to explain to the confused and frightened that ending this crazy prohibition of our age is good citizenship).
- There’s a great new documentary movie called "Evergreen" which tells the amazing and behind the scenes story of how a committed band of NORML-types waged our successful campaign and did what no one else until then had been able to do: make the responsible adult recreational use of marijuana a civil liberty. In my state and in Colorado now we can smoke pot just because it’s fun…we can invite our friends over and get high legally. Finally: pot is legal, taxed, and regulated. The movie tracks the political battle from start to finish and travels with me as I bring the NORML view to citizens all over the state–from churches to universities and to our capital dome. (Spoiler alert: the "rumble under the rotunda" is pretty messy.)
- And, you and your friends have a great opportunity to empower NORML to end the war on marijuana in your state too by joining or renewing your NORML membership or even joining up your mother. And, for that $50, we’ll send you a copy of the documentary movie, Evergreen.
This is important. We have momentum. There’s lots more to do. That’s why I’m donating these DVDs to NORML for this campaign. And that’s why I’m packing up and heading to Oregon next month for an intense week of media and lectures. We are a team and you matter. What are you doing? All we’re asking is that you send NORML $50. As a thanks, we’ll send you the exciting Evergreen movie.
I am so proud of what we did in Washington State. I’m proud of what NORML is doing nation-wide. And I’m really excited to offer you this movie on DVD. If you care about legalizing pot, this is something you need to watch. Share it with your friends. It’s an inspiration.
Again, to be among the first in the nation to watch Evergreen, please join NORML for $50 or more to receive your DVD copy of this important documentary capturing a historic change in American politics: When cannabis prohibition first ended.
I am contributing the cost of these DVDs to NORML as my personal challenge to you. I hope you’ll kindly join NORML, view Evergreen with friends and family, share with neighbors, co-workers and locally elected policymakers. I sincerely hope you too find the same inspiration we developed in Washington to get the job of ending marijuana prohibition done, once and for all.
Thanks in advance for your support of marijuana law reform in America and NORML’s long-standing public advocacy work.
Author and TV Host
NORML board member