September, 15 2015, 03:30pm EDT
For Immediate Release
Contact:
Mason Tvert, Director of Communications
For First Time in History, a State Generates More Annual Tax Revenue From Marijuana Sales Than From Alcohol Sales
Colorado’s ‘marijuana tax holiday’ on Wednesday will be a ‘much-deserved day off’ — the state raised nearly $70 million from marijuana-specific taxes in FY 2014-2015, compared to just under $42 million from alcohol-specific taxes
WASHINGTON
DENVER -- For 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 https://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."
The Marijuana Policy Project (MPP) is the number one organization in the U.S. legalizing cannabis. We passed 13 medical cannabis laws in the past 15 years, and we ran winning campaigns in eight of the 11 legalization states. No organization in the movement has changed as many cannabis laws, impacted as many patients and consumers, created as many new markets, or done more to end cannabis prohibition in the U.S. than MPP.
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