Colorado is one of the country’s foremost advocate of marijuana. Unsurprisingly, cannabis industry in the state has reached a staggering billion-dollar status in just eight months.
Faster than ever
Year-to-date sales of weed in Colorado increased by 21 percent from last year’s record. In 2016, marijuana sales only totaled $846.5 million while it positively moved upwards this year, hitting the billion mark at $1.02 billion in a new sales record.
For the month of August, the state was able to earn $137 million just from the sales of cannabis flower, edibles, concentrates, and accessories. The state’s revenue department lists cannabis’s taxes, licenses, and fees that were remitted in September. These reflect August sales but they claimed that results may vary due to incomplete returns from the previous months.
New taxing structure
It has been the second month that cannabis has been subject to a new tax structure in Colorado. DOR officials cite that the report reflects this stage of transition.
Recreational marijuana is now subject to a 15 percent special sales tax rate. Meanwhile, medical marijuana and its accessories remain subject to the standard 2.9 percent sales tax rate.
Many economists and officials of the state believe that the cannabis market in Colorado is hot for now but will eventually neutralize once other states establish their own recreational pot measures and the local market matures.
Marijuana was legalized in the Centennial State in 2014. Since then, the industry has progressed significantly as legislators and citizens alike equally pushed for proper measures towards cultivation, sales, and use of the drug.