Check Out Colorado’s Tax Bonanza — Generated by Pot

Photo (cc) by Amy Aletheia Cahill

The sale of legal recreational marijuana is rapidly filling the tax coffers in Colorado.

In just the first seven months of 2015, legal marijuana brought in $73.5 million in tax revenue, The Guardian reports. If that pace continues, Colorado could collect more than $125 million in pot taxes this year.

Although Colorado’s legal marijuana sales brought in $44 million in tax revenue in 2014, far less than the projected $70 million, this year’s marijuana sales are exceeding projections, The Guardian noted.

An increasing social acceptance of pot could be fueling the sales growth.

“People who would never have considered pot before are now popping their heads in,” Tim Cullen, CEO of Colorado Harvest Co., told The Guardian.

Cullen said the company is planning to expand from three to four dispensaries in the near future. He said his store sales have grown an average of 8 to 12 percent month-over-month this year.

Colorado collects application and license fees from pot distributors, as well as a 27.9 percent tax at the cash register — which includes a 2.9 percent retail and medical marijuana sales tax, a 10 percent retail pot special tax, and a 15 percent pot excise tax, Money reports.

The tax revenue generated by marijuana sales has already surpassed alcohol taxes, the Colorado Springs Business Journal reports. Alcohol is taxed at 2.9 percent sales tax plus $0.60 per liter for liquor and $0.08 per gallon of beer, Money noted. Cigarettes are taxed at 3.74 percent.

In July, just one year after recreational marijuana was legalized in Washington, the Evergreen State had collected $70 million in pot tax revenue from its $257 million in marijuana sales, according to CNN.

Voters in Oregon, Alaska and Washington, D.C., approved the legalization of recreational marijuana in Nov. 2014.

What do you think of the amount of money Colorado is collecting from marijuana sales? Sound off below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
7 Mistakes Guaranteed to Ruin Your Retirement

Make even one of these money mistakes, and you’ll probably end up eating ramen noodles in your golden years.

12 Tech Gadgets That Make Daily Life Easier

These products on Amazon will ease worries and simplify your routine.

Have You Heard of This Best Place to Retire in 2020?

The best place to retire in America is one you likely are not familiar with.

13 Things Seniors Can Get for Free — or Almost Free

There are many ways to get cheap or free services and goods after reaching a certain age.

What Brand Makes the Best Rechargeable AA Batteries?

The best battery depends on what you need it for and how big your budget is. Here’s how to find the cheapest brand that will do the job you need.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

10 Cars You Are Most Likely to Keep for 15 Years

The cars that owners hold onto the longest have one thing in common, a new study shows.

9 Things You Should Never Leave in a Car

Thinking of leaving these possessions in a car? Prepare for unexpected consequences.

7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

10 Things Successful Retirees Do Differently

These habits and characteristics can help put you on the track to success.

Will You Owe Taxes on Last Year’s Stimulus Payments?

It’s the question on everyone’s lips this tax season.

7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

29 Purchases That Can Save You Money Every Day

Sometimes, you’ve got to spend to save.

7 Things I Never Buy at Costco

A bulk buy isn’t always the best buy.

5 Tax Mistakes to Avoid in Retirement

Even great savers can reduce their retirement income by making these mistakes.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.