On the heels of a statewide “marijuana tax holiday” on September 16, it was announced that Colorado has become the first state to generate a higher annual tax revenue from marijuana sales than from taxes imposed on liquor.
According to the Colorado Department of Revenue, from July 1, 2014 through June 30, 2015, the state of Colorado accumulated almost $70 million through marijuana-specific taxes, compared to slightly under $42 million in alcohol-specific taxes. Mason Tvert, the director of communications for the Marijuana Policy Project, believes that customers have earned the one day tax holiday,
“Marijuana taxes have been incredibly productive over the past year, so this tax holiday is a much-deserved day off. This will be the one day out of the year when the state won’t generate significant revenue. Over the other 364 days, it will bring in tens of millions of dollars that will be reinvested in our state.”
While it is true that most cannabis customers spend more to purchase marijuana than they do alcohol, the nearly 28 percent tax on every cannabis sale offers an explanation to the considerably larger annual revenue marijuana produces.