Retail sales of cannabis in the month of January yielded an estimated $3.5 million dollars in state tax revenues, according to financial data released online this week by the Colorado Department of Revenue.
Under Colorado law, commercial cannabis producers must pay a 15 percent excise tax, while retail customers must pay an additional ten percent sales tax (on top of the state’s existing 2.9 percent sales tax) on any cannabis purchased at a licensed facility. The majority of Colorado voters approved the imposition of cannabis-specific taxes (Proposition AA) in November 2013.
For the month, customers spent an estimated $14 million on the purchase of marijuana and cannabis-infused goods at state-licensed facilities. This figure is anticipated to grow larger as more and more facilities become operational.
State law authorized the retail sale of cannabis beginning on January 1st to those age 21 or older. At that time, only 24 retailers were operational. By month’s end, nearly 60 facilities were up and running. Presently, over 150 licensed facilities are operational.
Similarly licensed retail operations are anticipated to be operational in Washington by this summer.