Recreational marijuana is now a legal and regulated system in Colorado. Businesses venturing into recreational marijuana are recommended to get a state Tax ID by filling up the Colorado online form. Ever since the legalization, the state saw the benefits which is evident in the number released by Colorado. In 2016 alone, the state was able to collect $200 million from combined marijuana fee, license and tax. The exact amount collected was $198.5 million.
This is the revenue of the state from the entire marijuana sales reaching $1.3 billion. There is a significant increase because sales in 2014 were only $699.2 million and in 2015 it was only $996.2 million.
The number may have increased more for the data in 2017 which is not yet published. The big question is where the marijuana tax dollars is being spent by the state officials considering that their funding state programs are facing some issues.
Sales of marijuana in Colorado have three kinds of taxes – the excise tax which is 15 per cent, the medical and recreational sales have taxes worth 2.9 per cent and retail sales have a special sales tax which is 10 per cent. A Marijuana Tax Cash Fund was created by the state. This is where all the taxes are deposited and distributed accordingly.
The pot tax dollars is going to the following, based on the 2016-2017 budget plan of the state Legislature.
- Building Excellent Schools Today or BEST fund is the recipient of the first $40 million they collect from excise tax annually. This will help fund projects in order repair or replace old public school buildings.
- Over $18 million is allotted for the Department of Public Health and Environment which will help various programs under the department. One of these programs is the Marijuana Education Campaign which is recipient of $7 million. The program is run by the state and it helps young people in Colorado to see their goals being achieved once they decide not to use marijuana. The substance abuse prevention program received $6.7 million.
- Three million dollars was given to the Department of Agriculture.
- Over $1 million was given to the office of the Attorney General.
With the legalization of recreational marijuana, many businesses are coming to Colorado. All are requested to submit Colorado online form to process their state Tax ID.