On June 12th, Colorado announced it had sold more than $1 billion in marijuana products. The total number of marijuana products sold in Colorado exceeds $6.5 billion since recreational sales began in 2014. As of May 2022, marijuana sales in Colorado were the highest per person ever. On average, people bought $280 worth of marijuana in the month. After legalizing marijuana in 2014, Washington and Oregon followed, each legalizing cannabis to some degree.
But some local governments do not support cannabis sales, as do many small towns across the country. Many municipalities oppose legalizing cannabis for recreational use, citing issues with drug-impaired driving and teenage access to marijuana. One small town in New Jersey has a school board president who opposes cannabis sales, and residents from neighboring towns are concerned about the negative consequences. Still, some believe legalizing cannabis will benefit the state.
Legalization in Colorado will allow out-of-state investors to invest in companies that make and sell cannabis products. This can only be a good thing for the industry. Legalization could also help Colorado marijuana companies branch out into other states. But as with any new industry, there is some uncertainty. In Colorado, marijuana sales have risen steadily since 2014.
The state has also drawn the attention of international companies. Canada has been a particularly active investor in the Colorado cannabis market. Hexo Corp., a Canadian packaged-cannabis goods company, purchased a production facility in Fort Collins lastest about marijuana in June. Meanwhile, Village Farms International purchased Denver-based CBD company Balanced Health Botanicals for $75 million last August. Combined with its existing dispensaries, Colorado will become one of the largest cannabis markets in the world.
While Colorado has strict financial regulations, the marijuana industry is not the most popular in the state. But its popularity has grown steadily in the past seven years. In fact, last year, recreational marijuana sales in Colorado accounted for over $2.2 billion dollars. This is a good start for the industry, but the road ahead is long. It could take many years for the industry to get up and running. The only way to guarantee success in the marijuana industry is to educate yourself about the law and make sure you know all the facts. Then, you can start preparing for the next big thing.
While June 2020 is not expected to top $1.3 billion, marijuana sales in Colorado have been growing year after year since its legalization. The state has now sold more than $12.3 billion of marijuana over eight years. And June 2022 will likely be the first month in the state’s history to top two billion dollars. Marijuana companies are not happy with Colorado’s current taxation structure. Currently, Colorado collects 2.9 percent state sales tax, 15% retail marijuana sales tax and additional local taxes.
Although medical marijuana sales took a step back in June, recreational marijuana sales made a leap forward. Medical marijuana dispensaries in Colorado sold $40,770,582 worth of products in June. This is 3.5% more than the previous record, which was set in May. Overall, recreational and medical marijuana businesses in Colorado combined for $198,873,210 in June, a staggering $385 million-dollar month.
The recreational marijuana market is already growing and has created a completely different business landscape for medical providers. What used to be a vertical market where dispensaries had to produce all their own products will now be available white widow feminized seeds as wholesale goods. Producers will be able to concentrate on niche markets in the cannabis industry. The state Department of Revenue has established five types of licenses for marijuana businesses, and one company can hold more than one.
Legalized recreational marijuana will add billions to the economy, create hundreds of thousands of jobs, and free up scarce police resources. It will also stop the racial disparity in marijuana enforcement and bring down street crime. Moreover, it will take business from drug cartels, making marijuana use safer and more legal. Marijuana is safer than alcohol, so it is a better option for reducing crime in the state.
Legalizing recreational marijuana in Colorado Springs would provide much needed tax revenue to local governments. Sales tax revenue would be used for public safety improvements, expansion of mental health services, and support for military veterans. All cannabis revenue collected would be subject to a citizen committee audit, so that all expenditures are approved by voters. A recent poll conducted by a local television news station showed that a majority of respondents supported legalizing recreational marijuana in Colorado Springs. The group behind the ballot initiative is collecting data to support the issue.