Colorado grows annual cannabis sales to $1 billion as other states struggle

www.cnbc.com
Date:
Wednesday, Jul 10, 2019

California Gov. Gavin Newsom's recent state budget plan slashed cannabis tax-revenue projections by $223 million. In the first half of 2018, revenue was $101 million below what was expected. According to reports, California charges a 45% tax on legal cannabis businesses when all taxes are taken into account, a finding that led to calls for a major tax rethink to better compete with the black market.

In Colorado, growers have to pay a 15% excise tax when their product is transferred from cultivation facility to retail store, while consumers have to pay a 15% sales tax on the purchase of cannabis. That's mostly in line with other states, though Washington has a 37% sales tax.

A budtender organizes and inventories marijuana flower at The Health Center, a medical cannabis and recreational marijuana dispensary in Denver. Vince Chandler | Denver Post | Getty Images

Other states simply haven't gotten their act together when it comes to selling cannabis. For instance, Maine had passed its Marijuana Legalization Act in 2016, only to have it vetoed in 2017. That veto was overturned in 2018. In April the state finally issued its first draft regulations on recreational use. It's not clear when cannabis will be available in stores.

We ' re breaking down barriers to raising money and supporting the operation of new and creative cannabis businesses. Jared Polis Colorado governor Related Tags

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