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taxes

  • by Kevin Mahmalji, NORML Outreach Director December 18, 2018

    As marijuana sales in Colorado exceed $1 billion, residents are seeing marijuana tax revenues being put to work in their communities. From funding local projects to restore historic sites and construct a new irrigation system in Denver, to providing college scholarships to more than 500 students in Pueblo, and statewide grants for early literacy programs, Coloradans from every corner of the state are benefiting from the legalization of marijuana.

    But there’s more. Similar to other areas of Colorado’s public education system that have benefited from marijuana tax revenues, the state’s School Bullying Prevention and Education Grant Program (BPEG), which has earned local and national recognition for its effectiveness, is being funded by the Marijuana Tax Cash Fund.

    “I think we provide an environment where you can concentrate on studying rather than just on conflicts,” Jessica Hale, Dean of Discipline at Skinner Middle School, stated in a recent interview with the Denver Post.

    Read more here: https://dpo.st/2Gr1DFj

    While some remain skeptical of marijuana legalization, it’s hard to ignore the positive impacts it’s having on communities across Colorado.

    Marijuana policy should be evidence based. Dispel the myths with the NORML Fact Sheets. For more information follow Colorado NORML on Facebook, Twitter, and visit their website

  • by Paul Armentano, NORML Deputy Director July 20, 2018

    A fiscal report issued by the state’s Auditor General estimates that taxing Pennsylvania’s existing retail cannabis market would yield $581 million in new annual revenue.

    The report estimates that just under 800,000 Pennsylvanians are currently using cannabis. Statewide polling finds that a majority of voters endorse legalizing and regulating its use by adults.

    “The benefits of regulating and taxing marijuana are undeniable,” the report concludes. “As its neighbors weigh the issue, Pennsylvania must act to create its own marijuana market. Otherwise, it runs the risk of losing the revenue from potential customers to other states. It is time for Pennsylvania to stop imagining the benefits of marijuana and realize them.”

    Pennsylvania’s Auditor General Eugene DePasquale has previously spoken in support of statewide legalization. Governor Tom Wolfe has expressed support for decriminalizing marijuana possession offenses, but has been reluctant to endorse legalizing the marijuana market.

    Full text of the report, “Regulating & Taxing Marijuana: A Special Report on the Potential Revenue & Financial Benefits for Pennsylvania,” appears online here.

  • by Paul Armentano, NORML Deputy Director July 20, 2017

    Marijuana ScienceRevenues from Colorado’s legal cannabis industry have surpassed over a half-billion dollars since retail sales began on January 1, 2014.

    According to an analysis by VS Strategies, cannabis-related taxes and fees have yielded $506,143,635 in new state revenue over the past three and one-half years. (Local tax revenue was excluded from the analysis.) Much of the revenue raised has gone to fund school construction projects, school-drop out and substance abuse prevention programs, and grant funding.

    The half-billion dollar total far exceeds initial projections. Tax revenue from legal cannabis sales in Oregon and Washington have also exceeded regulators’ initial expectations. In Nevada, where retail sales to adult became legal on July 1, retailers reported over 40,000 transactions in just the first weekend.

  • by Paul Armentano, NORML Deputy Director September 16, 2015

    NORMLState 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.

    According to market research reported recently by Marijuana Business Daily, the average amount spent on marijuana in states where the drug is legal is $1,800 per year versus only $450 for alcohol.

    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.

  • by Paul Armentano, NORML Deputy Director September 23, 2014

    Legalizing the retail production and sale of cannabis in the United States would yield over $3 billion in annual tax revenue, according to an analysis published this week by the personal finance website, NerdWallet.com.

    Authors provided a state-by-state economic analysis, taking into account available data estimating marijuana use rates (for those age 25 and older), cannabis market size, and state and local tax rates. Researchers also assumed a flat, 15 percent excise tax on commercial marijuana production. (This excise tax rate is presently imposed in Colorado.)

    Based on existing market projections, California would gain the largest amount of annual tax revenue ($519,287,052) were commercial cannabis production and sales to be legalized for adults. Other top tax revenue generating states include: New York ($248,103,676), Florida ($183,408,640), Texas ($166,303,963), and Illinois ($126,107,360).

    Washington, which began allowing retail cannabis sales this summer, is estimated to reap some $119,000,000 in annual tax revenue, according to the study’s projections. Colorado, which has allowed retail cannabis sales since January 1, 2014, is estimated to gain some $78,000,000 in annual revenue.

    Revenue projections for all 50 states are available online here.

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