Surprise surprise
Colorado brought in about $44 million in marijuana tax revenue last year. This year that number has almost doubled already and we still have five months left in the year—and Halloween and Thanksgiving
haven't even happened yet!!!!
Through the first seven months of this year, Colorado has brought in nearly $73.5m, putting the state on pace to collect over $125m for the year.
For some, last year's $44 million was disappointing, considering predictions were closer to $70 million. That's been wiped away with the newest numbers. What's changed?
“I attribute it to ... more and more people ... comfortable with the legalization of marijuana,” said Tyler Henson, president of the Colorado Cannabis Chamber of Commerce. “They don’t see it as something that’s bad for them.”
Tim Cullen, CEO of Colorado Harvest Company, said: “People who would never have considered pot before are now popping their heads in.” His company has three dispensaries in the Denver area and plans for a fourth. He noted that in his stores, where customers are primarily Colorado residents purchasing recreational marijuana, sales have been averaging 8% to 12% growth month over month for much of this year.
There was also a question of how
available marijuana was initially.
Early sales may have initially been dampened by the relative scarcity of dispensaries selling recreational marijuana. When retail sales began in January 2014, the only stores that were permitted to offer recreational marijuana were those with existing medical marijuana licenses. As a result, just a few dozen locations across the state offered recreational pot in the beginning of 2014.
“Ask any business owner now how hard it is getting your business approved and getting your license,” Henson, of the Colorado Cannabis Chamber of Commerce, argued. “We had a lot of new businesses and people getting on the market, but unfortunately weren’t able to come online right away.”
They are on now and more are coming. The quality of the shops are getting better and more diverse as different shops try to carve out what makes their space unique (a la bars or restaurants or Republican candidates). Also driving sales is tourism. There was a time when one has to go to Amsterdam during the summer between college. Now, you can go to Colorado.