A New Budget Proposal from Governor Hickenlooper‘s Office of State Planning and Budgeting is projecting a billion dollars in cannabis sales in the next 18 months. 800 Million of that will come from Recreational sales currently taxed at 12.9%. Recreational marijuana in Colorado is expected to bring in four times the tax revenue currently generated by medical marijuana. Medical marijuana is currently taxed at 2.9%.
The vast majority of the 100+ million in tax money will be used for substance abuse related programs (45 million for youth use prevention, 40 million for substance abuse treatment and 12 million for public health).
The Budget Proposal didn’t include the 15% Excise Tax. 40 million from the excise tax is already earmarked to build new schools in Colorado.
The Governor’s Office also put out this warning: ”these amounts are estimates based on a number of assumptions of the new industry…We anticipate that these projections will change monthly as more data is collected and actual revenue could fall short of these projections.”
Colorado’s New Fiscal Year will begin in July.
Here is a look at the Budget Projections released on February 19th.
Recreational marijuana: $194 million
Medical marijuana: $356.7 million
Recreational marijuana: $612.8 million
Medical marijuana: $344.9 millionThese numbers were extrapolated based on sales beginning January 1st, 2014