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The Irony of Marijuana Tax Revenue in Colorado

  • Feb 25, 2014 | Gail Cole

 Given the tax revenue, it might not be such a bad thing.

During their first month of business, the two new recreational marijuana stores in Pueblo County, Colorado, made just under $1 million in sales and collected more than $32,000 in sales tax. The county also collected more than $70,000 in licensing fees during the month of January, from both new and renewing medical and recreational marijuana businesses.

The $100,000 in tax revenue is a windfall for Pueblo County, where county commissioners have been striving to find revenue streams to boost the county’s general fund. Sales of recreational pot are taxed at 3.5% in Pueblo County; so long as business remains steady, that will provide a steady flow of tax revenue.

The irony

“The irony is that the only new revenue we have coming in is in marijuana and yet we have to open a new judicial building.”

That was noted by Commissioner Liane “Buffie” McFadyen. In response, County Budget and Finance Director Cal Hamler joked, “We’re going to have to sell more weed.”

It looks like that won’t be a problem. Pueblo County is on track to surpass the projected $400,000 in marijuana tax revenue for the year (The Pueblo Chieftan).

More irony

According to Governor John Hickenlooper’s recent budget proposal, revenue from the recreational pot industry is exceeding statewide expectations. The first $40 million of that revenue will go toward public school construction. In addition, the tax revenue will fund a number of marijuana prevention programs, substance abuse programs and drug education programs.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.