As the global marijuana movement progresses, the cost-benefit relationship of recreational marijuana continues to be a hot topic.
This week, Uruguay started to sell recreational marijuana, Colorado surpassed $500 million in marijuana tax revenue, and Nevada fixed a marijuana shortage created by the high demand for recreational marijuana.
Recreational Marijuana Is a Cash Cow
Although Colorado’s recreational market opened several years after the medical market opened, recreational marijuana accounts for most the revenue generated. The state has seen revenue from taxes and fees increase each year.
In 2014, Colorado generated $76 million in revenue from taxes and fees. Last year, the state generated $200 million.
These statistics were analyzed in a report released by VS Strategies and are based on data collected by the Colorado Department of Revenue. The Denver based pro legalization firm believes that we will see another 100% increase in revenue in 2018.
Putting Those Tax Dollars to Work
Colorado has put much of the tax revenue generated by the cannabis industry to work in schools throughout the state.
The state also allocated some of the revenue to drug prevention and treatment programs and for regulating the marijuana industry. Some of the capital will also be allocated to combat the opioid crisis.
In June Colorado Governor John Hickenlooper signed a budget bill and the Marijuana Tax Cash Fund went into effect. A portion of the fund will help create a program where trained health care professionals treat people who are addicted to opiates.
Recreational Cannabis Markets Continue to Expand
On July 1st, Nevada’s recreational marijuana market opened and demand significantly exceeded expectations. The state even had to declare a state of emergency since there was not enough supply to meet demand.
In July 2014, recreational marijuana became legal in Washington state. Last year, the state generated $256 million in revenue from marijuana. Oregon’s recreational marijuana market opened in October 2015 and the state generated $60 million in revenue last year.
Last October, Alaska’s recreational market came on-line and we expect to see new markets open soon. California, Maine, Massachusetts and the District of Columbia have also legalized recreational marijuana, but retail sales have not begun.
A Global Growth Story
The United States is in the middle of a marijuana revolution, but this revolution is not just taking place in the United States. We are seeing reform taking place all around the world.
credit:420intel.com
