Pioneer Pot States Have Collected More Than $200 Million In Marijuana Taxes

This is good news.
The first two states to legalize recreational marijuana have collectively raked in at least $200 million in marijuana tax revenue, according to the latest tax data -- and they're putting those dollars to good use.

In Colorado, after about a year and a half of legal recreational marijuana sales, the state has collected more than $117 million in excise taxes from both the recreational and medical marijuana markets, according to the most recent data from the Colorado Department of Revenue.

Washington state got a slower start. Its retail shops didn't begin selling recreational marijuana until July of last year, but they are keeping pace with Colorado's. About $83 million in excise taxes have already been collected in the year since sales first began, according to the most recent tax data from the Washington State Liquor and Cannabis Board.

MarijuanaTaxRevenue.png

And the total haul for both states is several million higher if all additional revenue from marijuana -- such as sales taxes, jurisdictional taxes, fees and licensing costs -- is included.

That marijuana revenue is, of course, just a drop in the bucket of the states' respective multi-billion dollar annual budgets, but it's real revenue nonetheless, revenue that helps pay for the very regulation that supports the legal marijuana market.

"Our philosophy has been that marijuana pays its own way," J. Skyler McKinley, deputy director of Colorado Gov. John Hickenlooper's (D) Office of Marijuana Coordination, told the Huffington Post. "Every dime we bring in from legalization is dedicated to the cost of legalization. That's regulatory framework first, then public education campaigns about safe and responsible use and then prevention and treatment programs."

But the tax revenue from legal marijuana won't solve a state's budget problems all by itself, he added.

"The big lesson we tell other states is you probably shouldn't legalize marijuana if you want to make money -- that's not why you do it," McKinley said. "You do it because you think that a regulated marketplace might be safer than an unregulated marketplace or you believe that the war on drugs didn't work."

Jaime Smith, deputy communications director for Washington Gov. Jay Inslee (D), echoed those sentiments.

"The legalization initiative was not driven by a desire for a revenue, but it has provided a small assist for our state budget," Smith said. "When you’re looking for billions of dollars, tens of millions doesn’t solve the problem but it certainly doesn’t hurt."

Those taxes and fees don't just support the regulation of marijuana: both states have flagged some of the revenue for public schools and expansive research.

In Colorado, a significant portion of marijuana tax revenue is designated for public schools in the state. For the 2014-2015 fiscal year, $23.9 million has been generated for the Building Excellent Schools Today (BEST) grant program, said Kevin Huber, regional program manager for the office of capital construction in the state's Education Department.

In addition to marijuana excise taxes, additional funding for BEST is provided from state lottery spillover proceeds and interest, as well as the state land trust -- all of which is put into a single fund and dispersed via grants to needy districts and schools. This year was the first time the state utilized the marijuana tax revenue as part of the total grants, which were awarded starting in May.

Colorado also funded about $8 million in marijuana research using revenue generated from various marijuana fees, putting it towards eight different studies investigating the medical promise of cannabis.

In Washington, a portion of the state's collected marijuana taxes and fees also goes to schools, via the state's general fund, but some of the most novel allocation of those dollars is toward research into the short- and long-term effects of the state's reformed marijuana policy, with multiple state agencies participating in that research.

One of the most ambitious research projects is from the state's own public policy research arm -- the Washington State Institute for Public Policy (WSIPP) -- which is conducting a broad cost-benefit analysis of the legalization of recreational marijuana.

The preliminary report from WSIPP will be released Sept. 1, Adam Darnell, senior research associate and the lead researcher on the report, told HuffPost. This first report will be limited, largely detailing the overall research plan for the full study with some information on how implementation of the law, the marijuana supply system, licensing and sales have progressed so far in the state.

Because Washington state's program was slower to come online than Colorado's, there's a delay in data sources, Darnell said. "Some of these effects, to actually resolve at the population level, take a little time to unfold," he said.

But the full scope of the project is exceedingly comprehensive. Reports are due Sept. 1 in 2017, 2022 and 2032, examining the effects of legalization on public health, safety, youth use, criminal justice, jobs creation, revenue and much more. It's a research goal so impressively lengthy and broad that the Brookings Institute called it "nearly unprecedented."

Colorado was the first state in the nation and the first government in the world to establish a regulated marijuana marketplace -- a profound shift in drug policy, to be sure, one that some lawmakers and law enforcers in the state thought would not roll out as successfully as it has. Along with Washington state, Oregon, Alaska and Washington, D.C., now also have legalized recreational marijuana (D.C. continues to ban sales). Still, it remains illegal under federal law.

Now more than a year after sales first began in Colorado and Washington, perhaps the most profound shift of all is the normalcy in which marijuana policy, and the revenue it generates, is seen by state government.
Pioneer Pot States Have Collected More Than $200 Million In Marijuana Taxes

I agree. All States and the Fed Govt. should regulate and tax it just like they do cigarettes and alcohol.

It would create a windfall worth millions of dollars.
As long as they don't over-tax it, like they are currently doing with cigarettes. The bootleggers are moving over to Tobacco.

I've heard of people getting them illegally from other countries or even other states online, but I don't hear too much about people getting busted for dealing in illegal cigarettes.
 
So liberals have vamp sucked $200 million dollars out of the pockets of the poor and middle class, while addling their brains with drugs, and they celebrate this? WTF libs.

What is different between this and alcohol? There is a type of "sin tax" associated with all vices. Cigarettes too. Would you rather they be illegal and have a black market demand?

Why tax the crap out of the poor and middle class, answer the question.
 
This is good news.
The first two states to legalize recreational marijuana have collectively raked in at least $200 million in marijuana tax revenue, according to the latest tax data -- and they're putting those dollars to good use.

In Colorado, after about a year and a half of legal recreational marijuana sales, the state has collected more than $117 million in excise taxes from both the recreational and medical marijuana markets, according to the most recent data from the Colorado Department of Revenue.

Washington state got a slower start. Its retail shops didn't begin selling recreational marijuana until July of last year, but they are keeping pace with Colorado's. About $83 million in excise taxes have already been collected in the year since sales first began, according to the most recent tax data from the Washington State Liquor and Cannabis Board.

MarijuanaTaxRevenue.png

And the total haul for both states is several million higher if all additional revenue from marijuana -- such as sales taxes, jurisdictional taxes, fees and licensing costs -- is included.

That marijuana revenue is, of course, just a drop in the bucket of the states' respective multi-billion dollar annual budgets, but it's real revenue nonetheless, revenue that helps pay for the very regulation that supports the legal marijuana market.

"Our philosophy has been that marijuana pays its own way," J. Skyler McKinley, deputy director of Colorado Gov. John Hickenlooper's (D) Office of Marijuana Coordination, told the Huffington Post. "Every dime we bring in from legalization is dedicated to the cost of legalization. That's regulatory framework first, then public education campaigns about safe and responsible use and then prevention and treatment programs."

But the tax revenue from legal marijuana won't solve a state's budget problems all by itself, he added.

"The big lesson we tell other states is you probably shouldn't legalize marijuana if you want to make money -- that's not why you do it," McKinley said. "You do it because you think that a regulated marketplace might be safer than an unregulated marketplace or you believe that the war on drugs didn't work."

Jaime Smith, deputy communications director for Washington Gov. Jay Inslee (D), echoed those sentiments.

"The legalization initiative was not driven by a desire for a revenue, but it has provided a small assist for our state budget," Smith said. "When you’re looking for billions of dollars, tens of millions doesn’t solve the problem but it certainly doesn’t hurt."

Those taxes and fees don't just support the regulation of marijuana: both states have flagged some of the revenue for public schools and expansive research.

In Colorado, a significant portion of marijuana tax revenue is designated for public schools in the state. For the 2014-2015 fiscal year, $23.9 million has been generated for the Building Excellent Schools Today (BEST) grant program, said Kevin Huber, regional program manager for the office of capital construction in the state's Education Department.

In addition to marijuana excise taxes, additional funding for BEST is provided from state lottery spillover proceeds and interest, as well as the state land trust -- all of which is put into a single fund and dispersed via grants to needy districts and schools. This year was the first time the state utilized the marijuana tax revenue as part of the total grants, which were awarded starting in May.

Colorado also funded about $8 million in marijuana research using revenue generated from various marijuana fees, putting it towards eight different studies investigating the medical promise of cannabis.

In Washington, a portion of the state's collected marijuana taxes and fees also goes to schools, via the state's general fund, but some of the most novel allocation of those dollars is toward research into the short- and long-term effects of the state's reformed marijuana policy, with multiple state agencies participating in that research.

One of the most ambitious research projects is from the state's own public policy research arm -- the Washington State Institute for Public Policy (WSIPP) -- which is conducting a broad cost-benefit analysis of the legalization of recreational marijuana.

The preliminary report from WSIPP will be released Sept. 1, Adam Darnell, senior research associate and the lead researcher on the report, told HuffPost. This first report will be limited, largely detailing the overall research plan for the full study with some information on how implementation of the law, the marijuana supply system, licensing and sales have progressed so far in the state.

Because Washington state's program was slower to come online than Colorado's, there's a delay in data sources, Darnell said. "Some of these effects, to actually resolve at the population level, take a little time to unfold," he said.

But the full scope of the project is exceedingly comprehensive. Reports are due Sept. 1 in 2017, 2022 and 2032, examining the effects of legalization on public health, safety, youth use, criminal justice, jobs creation, revenue and much more. It's a research goal so impressively lengthy and broad that the Brookings Institute called it "nearly unprecedented."

Colorado was the first state in the nation and the first government in the world to establish a regulated marijuana marketplace -- a profound shift in drug policy, to be sure, one that some lawmakers and law enforcers in the state thought would not roll out as successfully as it has. Along with Washington state, Oregon, Alaska and Washington, D.C., now also have legalized recreational marijuana (D.C. continues to ban sales). Still, it remains illegal under federal law.

Now more than a year after sales first began in Colorado and Washington, perhaps the most profound shift of all is the normalcy in which marijuana policy, and the revenue it generates, is seen by state government.
Pioneer Pot States Have Collected More Than $200 Million In Marijuana Taxes

I agree. All States and the Fed Govt. should regulate and tax it just like they do cigarettes and alcohol.

It would create a windfall worth millions of dollars.
As long as they don't over-tax it, like they are currently doing with cigarettes. The bootleggers are moving over to Tobacco.

I've heard of people getting them illegally from other countries or even other states online, but I don't hear too much about people getting busted for dealing in illegal cigarettes.

Sell 'Em if You Got 'Em: Cigarette Taxes Help Make Smuggling Smokes Profitable

A trunk or a truck filled with cases of smokes can yield a five-to-seven-figure payday. It’s a temptation that many—including small-time criminals, cops, military personnel, convenience store owners, cigarette wholesalers, and organized crime—can’t pass up. A roundup of recent stories:
 
People who want to keep alcohol legal just want to sit around and get drunk all day and everyday.

Wait, what?
 
", but I don't hear too much about people getting busted for dealing in illegal cigarettes." CL
It is rare, but not unknown.
"The power to tax is the power to destroy."
It's theoretically possible to "legalize" drugs, and tax them at $100 $Trillion $Dollars per gram.
That might be a dejure legalization.
But it is a defacto prohibition. The few wealthy enough to pay such $tax would be wealthy enough to not bother.

Black Markets arise when they become economically competitive with ostensibly legitimate markets.
It's not the market value of tobacco which drives its retail cost up so high.
It's the $sin $tax the government imposes on it.

So basically, in the U.S., black market cigarettes are about tax evasion.
Seem familiar? That's what they busted Al Capone for.
 
This is good news.
The first two states to legalize recreational marijuana have collectively raked in at least $200 million in marijuana tax revenue, according to the latest tax data -- and they're putting those dollars to good use.

In Colorado, after about a year and a half of legal recreational marijuana sales, the state has collected more than $117 million in excise taxes from both the recreational and medical marijuana markets, according to the most recent data from the Colorado Department of Revenue.

Washington state got a slower start. Its retail shops didn't begin selling recreational marijuana until July of last year, but they are keeping pace with Colorado's. About $83 million in excise taxes have already been collected in the year since sales first began, according to the most recent tax data from the Washington State Liquor and Cannabis Board.

MarijuanaTaxRevenue.png

And the total haul for both states is several million higher if all additional revenue from marijuana -- such as sales taxes, jurisdictional taxes, fees and licensing costs -- is included.

That marijuana revenue is, of course, just a drop in the bucket of the states' respective multi-billion dollar annual budgets, but it's real revenue nonetheless, revenue that helps pay for the very regulation that supports the legal marijuana market.

"Our philosophy has been that marijuana pays its own way," J. Skyler McKinley, deputy director of Colorado Gov. John Hickenlooper's (D) Office of Marijuana Coordination, told the Huffington Post. "Every dime we bring in from legalization is dedicated to the cost of legalization. That's regulatory framework first, then public education campaigns about safe and responsible use and then prevention and treatment programs."

But the tax revenue from legal marijuana won't solve a state's budget problems all by itself, he added.

"The big lesson we tell other states is you probably shouldn't legalize marijuana if you want to make money -- that's not why you do it," McKinley said. "You do it because you think that a regulated marketplace might be safer than an unregulated marketplace or you believe that the war on drugs didn't work."

Jaime Smith, deputy communications director for Washington Gov. Jay Inslee (D), echoed those sentiments.

"The legalization initiative was not driven by a desire for a revenue, but it has provided a small assist for our state budget," Smith said. "When you’re looking for billions of dollars, tens of millions doesn’t solve the problem but it certainly doesn’t hurt."

Those taxes and fees don't just support the regulation of marijuana: both states have flagged some of the revenue for public schools and expansive research.

In Colorado, a significant portion of marijuana tax revenue is designated for public schools in the state. For the 2014-2015 fiscal year, $23.9 million has been generated for the Building Excellent Schools Today (BEST) grant program, said Kevin Huber, regional program manager for the office of capital construction in the state's Education Department.

In addition to marijuana excise taxes, additional funding for BEST is provided from state lottery spillover proceeds and interest, as well as the state land trust -- all of which is put into a single fund and dispersed via grants to needy districts and schools. This year was the first time the state utilized the marijuana tax revenue as part of the total grants, which were awarded starting in May.

Colorado also funded about $8 million in marijuana research using revenue generated from various marijuana fees, putting it towards eight different studies investigating the medical promise of cannabis.

In Washington, a portion of the state's collected marijuana taxes and fees also goes to schools, via the state's general fund, but some of the most novel allocation of those dollars is toward research into the short- and long-term effects of the state's reformed marijuana policy, with multiple state agencies participating in that research.

One of the most ambitious research projects is from the state's own public policy research arm -- the Washington State Institute for Public Policy (WSIPP) -- which is conducting a broad cost-benefit analysis of the legalization of recreational marijuana.

The preliminary report from WSIPP will be released Sept. 1, Adam Darnell, senior research associate and the lead researcher on the report, told HuffPost. This first report will be limited, largely detailing the overall research plan for the full study with some information on how implementation of the law, the marijuana supply system, licensing and sales have progressed so far in the state.

Because Washington state's program was slower to come online than Colorado's, there's a delay in data sources, Darnell said. "Some of these effects, to actually resolve at the population level, take a little time to unfold," he said.

But the full scope of the project is exceedingly comprehensive. Reports are due Sept. 1 in 2017, 2022 and 2032, examining the effects of legalization on public health, safety, youth use, criminal justice, jobs creation, revenue and much more. It's a research goal so impressively lengthy and broad that the Brookings Institute called it "nearly unprecedented."

Colorado was the first state in the nation and the first government in the world to establish a regulated marijuana marketplace -- a profound shift in drug policy, to be sure, one that some lawmakers and law enforcers in the state thought would not roll out as successfully as it has. Along with Washington state, Oregon, Alaska and Washington, D.C., now also have legalized recreational marijuana (D.C. continues to ban sales). Still, it remains illegal under federal law.

Now more than a year after sales first began in Colorado and Washington, perhaps the most profound shift of all is the normalcy in which marijuana policy, and the revenue it generates, is seen by state government.
Pioneer Pot States Have Collected More Than $200 Million In Marijuana Taxes

I agree. All States and the Fed Govt. should regulate and tax it just like they do cigarettes and alcohol.

It would create a windfall worth millions of dollars.
As long as they don't over-tax it, like they are currently doing with cigarettes. The bootleggers are moving over to Tobacco.

I've heard of people getting them illegally from other countries or even other states online, but I don't hear too much about people getting busted for dealing in illegal cigarettes.

Sell 'Em if You Got 'Em: Cigarette Taxes Help Make Smuggling Smokes Profitable

A trunk or a truck filled with cases of smokes can yield a five-to-seven-figure payday. It’s a temptation that many—including small-time criminals, cops, military personnel, convenience store owners, cigarette wholesalers, and organized crime—can’t pass up. A roundup of recent stories:

Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.
 
Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.
It's a bigger deal where the taxes are the highest, like NYC.
 
Good one left-wing morons!!

and when you keep taxing it to fund your failed Progressive policies you will eventually re-create the illegal market for it>


New York Creates Massive Cigarette Black Market, Wants ...
reason.com/blog/2015/.../new-york-creates-massive-cigarette-blac...
Reason
Loading...
Mar 20, 2015 - Assef ElweterWith state cigarette taxes at $4.35 per pack and the Big Apple piling another $1.50 on top of that, New York has become a major ...
 

I agree. All States and the Fed Govt. should regulate and tax it just like they do cigarettes and alcohol.

It would create a windfall worth millions of dollars.
As long as they don't over-tax it, like they are currently doing with cigarettes. The bootleggers are moving over to Tobacco.

I've heard of people getting them illegally from other countries or even other states online, but I don't hear too much about people getting busted for dealing in illegal cigarettes.

Sell 'Em if You Got 'Em: Cigarette Taxes Help Make Smuggling Smokes Profitable

A trunk or a truck filled with cases of smokes can yield a five-to-seven-figure payday. It’s a temptation that many—including small-time criminals, cops, military personnel, convenience store owners, cigarette wholesalers, and organized crime—can’t pass up. A roundup of recent stories:

Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.

It's a problem because:

1) A loss of tax revenue
2) Government has to waste time enforcing it
3) Creates a general disrespect for the law.
4) The profits have begun to get to the point where violence is becoming part of the equation.
 
Good one left-wing morons!! and when you keep taxing it to fund your failed Progressive policies you will eventually re-create the illegal market for it>
New York Creates Massive Cigarette Black Market, Wants ...
reason.com/blog/2015/.../new-york-creates-massive-cigarette-blac...
Mar 20, 2015 - Assef ElweterWith state cigarette taxes at $4.35 per pack and the Big Apple piling another $1.50 on top of that, New York has become a major.
Only if the taxes are too high. Haven't you been reading the thread or are you just a knee-jerk poster?
 
Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.
It's a bigger deal where the taxes are the highest, like NYC.

Yep, the profit margins are pretty good if you can roll up in a small U-haul with a load. Plus, it's white collar crime, local tax evasion, which has softer penalties than drug trafficking.
 
Good one left-wing morons!! and when you keep taxing it to fund your failed Progressive policies you will eventually re-create the illegal market for it>
New York Creates Massive Cigarette Black Market, Wants ...
reason.com/blog/2015/.../new-york-creates-massive-cigarette-blac...
Mar 20, 2015 - Assef ElweterWith state cigarette taxes at $4.35 per pack and the Big Apple piling another $1.50 on top of that, New York has become a major.
Only if the taxes are too high. Haven't you been reading the thread or are you just a knee-jerk poster?


YAWN; no leftard just a keen observer of Progressive behavior. you just cant help yourselves
 
Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.
It's a bigger deal where the taxes are the highest, like NYC.

Well do you think it would be an even bigger deal if cigarettes were banned?
 
I agree. All States and the Fed Govt. should regulate and tax it just like they do cigarettes and alcohol.

It would create a windfall worth millions of dollars.
As long as they don't over-tax it, like they are currently doing with cigarettes. The bootleggers are moving over to Tobacco.

I've heard of people getting them illegally from other countries or even other states online, but I don't hear too much about people getting busted for dealing in illegal cigarettes.

Sell 'Em if You Got 'Em: Cigarette Taxes Help Make Smuggling Smokes Profitable

A trunk or a truck filled with cases of smokes can yield a five-to-seven-figure payday. It’s a temptation that many—including small-time criminals, cops, military personnel, convenience store owners, cigarette wholesalers, and organized crime—can’t pass up. A roundup of recent stories:

Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.

It's a problem because:

1) A loss of tax revenue
2) Government has to waste time enforcing it
3) Creates a general disrespect for the law.
4) The profits have begun to get to the point where violence is becoming part of the equation.

The fact remains that it is LESS of a problem when legalized. The lessens illegal demand for the product.
 
As long as they don't over-tax it, like they are currently doing with cigarettes. The bootleggers are moving over to Tobacco.

I've heard of people getting them illegally from other countries or even other states online, but I don't hear too much about people getting busted for dealing in illegal cigarettes.

Sell 'Em if You Got 'Em: Cigarette Taxes Help Make Smuggling Smokes Profitable

A trunk or a truck filled with cases of smokes can yield a five-to-seven-figure payday. It’s a temptation that many—including small-time criminals, cops, military personnel, convenience store owners, cigarette wholesalers, and organized crime—can’t pass up. A roundup of recent stories:

Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.

It's a problem because:

1) A loss of tax revenue
2) Government has to waste time enforcing it
3) Creates a general disrespect for the law.
4) The profits have begun to get to the point where violence is becoming part of the equation.

The fact remains that it is LESS of a problem when legalized. The lessens illegal demand for the product.

From a law enforcement point yes. We still need to see how legalization impacts things like driving while impaired, or increases in access to underage users. That type of data takes years to develop.
 
Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.
It's a bigger deal where the taxes are the highest, like NYC.
Well do you think it would be an even bigger deal if cigarettes were banned?
Of course, just look what happened with prohibition, it was a shot in the arm for The Mob.
 
Good one left-wing morons!!

and when you keep taxing it to fund your failed Progressive policies you will eventually re-create the illegal market for it>


New York Creates Massive Cigarette Black Market, Wants ...
reason.com/blog/2015/.../new-york-creates-massive-cigarette-blac...
Reason
Loading...
Mar 20, 2015 - Assef ElweterWith state cigarette taxes at $4.35 per pack and the Big Apple piling another $1.50 on top of that, New York has become a major ...

I guess in your mind a 5% black market is worse than a 100% black market.
Tobacco use is and has been on the decline for some time now.
 
Yes, I've heard of it before, but not very often. Are blackmarket cigarette dealings really a HUGE problem today in America? I think not. They probably would be if they were made illegal though.
It's a bigger deal where the taxes are the highest, like NYC.
Well do you think it would be an even bigger deal if cigarettes were banned?
Of course, just look what happened with prohibition, it was a shot in the arm for The Mob.

If you don't get rid of demand, there will always be a supply, and when there is large amounts of money involved, there will usually be violence.
 

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