How Much Money Does Recrenational Marijuna Make In Colorado
Always since Colorado legalized recreational cannabis there's 1 perennial question that everyone always asks. Where is all the tax revenue from marijuana sales going?
Depending on where you live, the questions may get a scrap more specific: If schools get pot money why practise they continue to hurt for cash? Are school buildings getting fixed? Why is my town or canton seeking taxation hikes, aren't government budgets pot plush? What do we get for our tax money? Where is it ending up?
In brusk, there'southward a lot of questions.
Despite the fervor, marijuana isn't the big greenish budget bandage that many envisioned. That's not to say that the state isn't making money on the deal, just, similar many taxes, information technology's not a cure-all that balances the checkbook.
How much is marijuana taxed in Colorado?
Colorado's recreational marijuana tax rate increased in 2017 to 15 per centum, upwardly from 10 pct, where it had been parked since legalization in 2014.
That's the rate you lot pay when you're checking out at the dispensary. Before it even gets to you, recreational marijuana is as well subject to a 15 percent excise revenue enhancement, which is triggered each fourth dimension the production is transferred from a production facility to a dispensary.
Ann Marie Awad/CPR News There'due south a state sales tax of ii.nine percent that only applies to medical marijuana, another modify made in 2017. Medical marijuana doesn't go hitting with an excise tax before it arrives on shelves, which is why prices at the annals tend to exist lower for medical marijuana cardholders.
On top of that, all cannabis sales — medical or recreational — are subject field to local taxes. Districts throughout the state tin collect sales tax on marijuana. For example, most people who live in the Denver metro pay an additional 1 percent taxation on sales of very specific items, including marijuana, to fund the Regional Transportation District. Marijuana-purchasing Denverites also support the Scientific and Cultural Facilities Commune.
What else practice marijuana taxes pay for on the local level?
It depends on where yous alive!
Aurora, for example, has used marijuana revenue enhancement coin to create The Aurora Mean solar day Centre, a place for homeless people to become during the day It'southward office of the city's larger $1.5 million investment in combatting homelessness, courtesy of Aurora'due south cannabis consumers. For the third year in a row, Pueblo has used marijuana revenue enhancement money to fund scholarships, doling out $634,000 to 563 students then far in 2018.
There are limits on marijuana taxes that can be levied locally.
Like Pueblo, Adams County had been using marijuana revenue enhancement revenue to fund scholarships for underprivileged students. But the county's voter-approved tax on recreational marijuana that targeted three specific cities was later found unconstitutional. The canton may take to pay the money back.
How much does the state earn from marijuana taxes?
The total number that the state takes in includes all those taxes we talked about above, along with cash fabricated from other aspects of the whole marijuana infrastructure — application and renewal fees for business licenses and such.
In 2017, Colorado fabricated more $247 1000000 in marijuana taxes, licenses and fees. E'er since recreational marijuana was legalized in 2014, the handbag has gotten bigger and bigger.
So, that'southward a lot of money into the state budget, correct?
Uh, in a word. Not really. As a per centum of the country upkeep, it's less than one percentage. Here'due south a graphic provided by the state budget part.
Courtesy Colorado Office Of State Planning and Upkeep How is that money allocated?
Well, before nosotros get to answering that, allow's see what Amendment 64, the 2014 voter-approved constitutional amendment that legalized recreational marijuana, actually said nigh this.
Here's what voters agreed to:
"THE GENERAL ASSEMBLY SHALL ENACT AN EXCISE TAX TO Exist LEVIED UPON MARIJUANA SOLD OR OTHERWISE TRANSFERRED By A MARIJUANA Cultivation FACILITY TO A MARIJUANA PRODUCT MANUFACTURING FACILITY OR TO A RETAIL MARIJUANA STORE AT A RATE NOT TO EXCEED Xv Pct PRIOR TO JANUARY one, 2017 [...] PROVIDED, THE First Xl MILLION DOLLARS IN REVENUE RAISED ANNUALLY FROM Any SUCH EXCISE Taxation SHALL BE CREDITED TO THE PUBLIC Schoolhouse Capital letter CONSTRUCTION ASSISTANCE FUND CREATED Past Article 43.vii OF Title 22, C.R.S., OR ANY SUCCESSOR FUND DEDICATED TO A Like PURPOSE."
Of the 15 pct retail excise taxation (the 1 paid when cannabis moves from grower to seller), the offset $40 one thousand thousand or 90 pct, whichever is greater, goes to the Best capital construction grant plan, where schools, districts and various education providers tin utilize for money to build new buildings or renovate existing facilities. The latest round of awards will pay for lots of maintenance projects. That marijuana moolah tin can't pay for things like teacher salaries though.
The residual of the excise tax revenue, an actress $31.vi million in 2016-17 according to the Section of Revenue, goes to the Public School Permanent Fund overseen by the country treasury. The interest generated by that fund supports K-12 education, including maintenance.
If you want to get a deeper look at how marijuana taxation coin funds schools, bank check out this story.
The recreational xv percent special sales tax, minus a local share, goes to the state's general fund where a small sliver is split off for the Department of Education's State Public Schoolhouse Fund (different than the permanent fund mentioned above) and the balance paid into the piggy banking company that lawmakers created as a part of legalization: The Marijuana Taxation Cash Fund. The two.9 percent sales tax on medical goes entirely into the Marijuana Tax Cash Fund.
That coin bankrolls lots of different things. More than $2.2 meg went to the state Department of Agriculture, to fund hemp regulation and seed certification and the Colorado Country Fair Dominance. More than greenbacks went to education — to the tune of more than $xx million in 2018 — through grants for schoolhouse health professionals, early literacy programs and dropout and bullying prevention.
Courtesy Colorado Office Of State Planning And Budget Any other burning questions about marijuana or taxes?
Let u.s.a. know. You can email u.s. at business concern@cpr.org or ask Colorado Wonders.
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Source: https://www.cpr.org/2018/10/22/where-does-all-the-marijuana-money-go-colorados-pot-taxes-explained/
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