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Marijuana Business News

First Time Ever – A State Generates More Annual Tax Revenue From Marijuana Than From Alcohol

alcohol marijuana binge drinkingFor the first time in history, a state has generated more annual revenue from taxes imposed on marijuana than from taxes imposed on alcohol. According to the Colorado Department of Revenue, the state collected nearly $70 million in marijuana-specific taxes and just under $42 million in alcohol-specific taxes from July 1, 2014 through June 30, 2015.

The news comes as Colorado prepares for a “marijuana tax holiday” on Wednesday, during which the state is suspending marijuana-specific taxes for one day. For a more detailed explanation, view the Associated Press’s coverage at http://dpo.st/1iMKrcI.

“Marijuana taxes have been incredibly productive over the past year, so this tax holiday is a much-deserved day off,” said Mason Tvert, director of communications for the Marijuana Policy Project and a co-director of the campaign in support of the 2012 initiative to regulate and tax marijuana like alcohol in Colorado. “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.”

Colorado raised nearly $69,898,059 from marijuana-specific taxes in FY 2014-2015, including $43,938,721 from a 10% special sales tax on retail marijuana sales to adults and $25,959,338 from a 15% excise tax on wholesale transfers of marijuana intended for adult use. The state raised just under $41,837,647 from alcohol-specific taxes in FY 2014-2015, including $27,309,606 from excise taxes collected on spirited liquors, $8,881,349 from excise taxes on beer, and $5,646,692 from excise taxes collected on vinous liquors. These figures do not include standard state sales taxes or any local taxes.

“It’s crazy how much revenue our state used to flush down the drain by forcing marijuana sales into the underground market,” Tvert said. ”It’s even crazier that so many states are still doing it. Tax revenue is just one of many good reasons to replace marijuana prohibition with a system of regulation.”

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The Marijuana Policy Project is the nation’s largest marijuana policy organization. For more information, visit https://www.MarijuanaPolicy.org.

  • I don’t find this surprising at all. It sure as hell is more expensive. When are they going to have quality 8ths that are the cost of a six pack?

    • the one

      An 8th doesn’t compare to a six pack Pete, I don’t know how much you blaze but a six pack will only give me one buzz but an 8th makes for many good ones. No comparison bro… I do like the thought of cheaper weed though.

      • Oh I agree a six pack doesn’t remotely compare. I just meant I want to buy some herb that costs the same PRICE as a six pack. I think the cost for marijuana is completely out of wack in relation to its demand. It’s practically falling from the sky yet my 8th can cost 60$?? No way. Economics is not my finest suit, so if I’m missing something here please explain haha.

        • Bongstar420

          You are welcome to produce the items you demand if its “so easy.”

          After you are successful at proving your point by starting a legal business and underselling the market, you opinion will carry actual weight. With 0 regulations, pot will be 2x more expensive just selling it in stores vs “black market” at wholesale parity.

    • Bongstar420

      A quality 3.5g sack has 60-90 doses.
      A quality 1.0g has 17-25 doses.

      0.6oz of ethanol=10mg of THC (dose)

      Pot is already much cheaper than booze by the dose. You can get legal grams in Oregon for $10 and with the rec tax it will be $12.50.

      $12.50/17=$0.73/dose
      $12.50/25=$0.50/dose

  • Bongstar420

    The tax on alcohol is frequently really low per dose by comparison…

    http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=349

  • Nathaniel

    Which is neat, but relative to the cost of the products in question that is not a surprise in the least. Once cannabis production costs comes down considerably, and the use is allowed in bar/public social settings we will see this trend level out.

  • Kathleen Chippi

    ?? that is usually the case when cannabis is taxed 10-35% (dependent on what local taxes are added) and alcohol is taxed at 1.9% statewide….