Tax Revenue Flows In From The Legalization Of The Cannabis Drug
Those who oppose medical cannabis have been known to state frequently that legalizing the sale and distribution of the substance would be unlikely to create any tax increase for states who relax their laws. It is looking as though the sceptics will have to accept defeat however as statistics begin to emerge to prove their theories wrong. Whilst at first, tax was only coming in in small amounts from cannabis drug sales, in Colorado the revenue coming into the state from the sales of cannabis have now overtaken the revenue for alcohol. The state has been doing so well when it comes to taxes charged on both marijuana and alcohol that a one-day tax holiday was even offered to citizens in September 2015.
More Taxes Made From Marijuana Than Alcohol For Colorado This Year
Although these statistics do prove the doubters wrong, Colorado is still so far the only state to see such dramatic tax revenues from the substance. Colorado, according to it’s department of revenue has taken $70 million in marijuana based taxes, whilst alcohol sales have only brought in $42 million for Colorado. That’s quite a difference in figures, and certainly something to take notice of. As most states that have relaxed their laws for the substance have only concentrated on legalizing medicinal marijuana so far, it is not surprising that Colorado is so far the only state whose tax statistics are better for marijuana than for alcohol. Colorado allows its citizens to use marijuana not only for medicinal purposes, but also for recreational purposes. In fact, the state only imposes some restrictions on the substance, such as the amount that people are allowed to carry and rules on the taxing of the drug. There are also laws about the ages of those who use the substance.
The tax-free holiday given to Colorado residents in September was a one-off day, giving residents the chance to take advantage of the savings from not needing to pay taxes. Whilst this was a knock back for the state for one day as taxes were not earned, it was barely felt by Colorado, who has seen such a significant increase in tax revenue from marijuana that it is in one of the best financial positions that it has ever been in.
Resources Better Used With Lifted Restrictions On Marijuana
Colorado and Washington together have so far earned over $200 million in tax revenue from marijuana sales only. This is enough to silence the critics who have so far claimed that no good can come from the legalization of marijuana. Not only is tax revenue up, but resources that would usually be tied up dealing with petty marijuana offenses can now be put to better use. With better law enforcement management, costs can be saved here too.