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Where Does Colorado Cannabis Tax Money Go?

Colorado Cannabis & The Federal Tax Code

Yes on Senate Bill 205

Protecting children and enhancing public safety by regulating intoxicating hemp products

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Colorado state tax revenue from the legal cannabis industry surpassed $2 billion in January and the state has collected more than $88.7 million in fees.

In addition to state and local taxes and fees, cannabis businesses have an effective federal tax rate of about 70% – compared to about 26% for other businesses. 

Did you know Colorado legal cannabis dispensary owners are unable to deduct normal business expenses like payroll and rent from their federal income taxes?

Marijuana has contributed over $320 Million dollars to Building Excellent Schools Today (B.E.S.T.), making up about 25% of the program's entire budget.

In FY 21-22 alone, nearly $15.3 million in state cannabis dollars went to state Affordable Housing Grant and Loans.

The Marijuana Tax Cash Fund collected $188.8 Million in FY 2021-22 alone.

In FY 21-22 alone, nearly $15 million in cannabis dollars went to the School Health Professional Grant program. 

More than $15 million in cannabis dollars went to substance abuse treatment in FY 21-22.

More than $1.6 million cannabis dollars went to the Tony Grampsas Youth Services Program in FY 21-22.

Voters in 59 of 64 Colorado counties voted no on Proposition 119 sending a clear message against raising taxes on cannabis consumers.

Unlike other legalized substances, the marijuana industry has a 97% compliance rate for unauthorized sales.

Unlike alcohol, research has proven you can only get “so high.” Cannabinoid receptors in your brain eventually prevent the body from getting further intoxicated.

Did you know? Since legalization in 2005, teen use in Colorado has remained flat and is below the national average.

According to a recent poll by the Pew Research Center, more than 90% of Americans think cannabis use should be legal.

Did you know? MIG represents more than 400 cannabis business licenses across the state.

A 2021 study found that medical cannabis use was associated with clinical improvements in pain, function, and quality of life with reductions in prescription drug use. 

Founded in 2010, MIG is the oldest and largest trade association for licensed cannabis businesses.

Colorado’s marijuana model has become the example for all other regulated cannabis states, and MIG works directly with policy makers to ensure that Colorado’s program is fair, tightly regulated, safe, and successful.

Safe Sales: Every marijuana sale in CO takes place on camera and requires multiple ID checks.

All regulated marijuana in Colorado is tracked from “seed to sale,” with oversight from the Marijuana Enforcement Division.

Established in 2010, MIG has led legislation for child resistant packaging, customer safety resources, and purchase restrictions for 18-20 year olds.

Marijuana is taxed at both state and local levels. This year Aurora built a new $34 Million dollar rec center, fully funded by local marijuana taxes.

The marijuana industry suffers from unfair Federal tax rules, which means that MIG members’ effective tax rates are around 71%.

A 2019 study showed that crime does not increase with legalization.

Conditions for medical marijuana

Cancer - Glaucoma - HIV or AIDS - Cachexia - Persistent muscle spasms - Seizures - Severe nausea - Any condition for which a physician could prescribe an opioid - Autism Spectrum Disorder - Severe pain - PTSD

Most marijuana businesses have access to banks, but because marijuana is still federally illegal, businesses are unable to access merchant processing services such as VISA or Mastercard.

Consuming higher potency marijuana does not lead to higher levels of impairment.
-- Journal of the American Medical Association (JAMA) 2020

71% of Colorado voters favor marijuana legalization. This has increased 10 points in the last four years alone.

Cannabis industry leaders launch best practices in sustainability

MIG Press Release

FOR IMMEDIATE RELEASE:                                                             

 

March 17, 2021                                                                                                            

Contact: Alvina Vasquez

303-881-3875 alvina@powermapltd.com                                                                                                   

                                                                                                                                       

Cannabis industry leaders launch best practices in sustainability

 

Denver, CO ---The Marijuana Industry Group and the Cannabis Certification Council are excited to partner to produce a new series of events to inform and educate cannabis industry leaders and business owners. In each installation of the Sustainability Best Practices Deep Dive series, Colorado cannabis companies will learn how to incorporate sustainable best practices in an economically viable way. 

 

“Sustainability is a top priority in the industry,” said Truman Bradley, Executive Director of the Marijuana Industry Group. “We know that our use of natural resources will have a long-lasting effect on our environment, and we are determined to be good stewards. Colorado cannabis companies are continuing to lead this industry in implementing sustainable business practices and these deep dives are a chance to bring the best practitioners together.”

 

“Partnering with the Marijuana Industry Group to educate the Colorado industry on sustainability is a testament to their leadership and the forward-looking nature of the cannabis industry, especially in Colorado” said Ben Gelt, board chair of The Council. “We have established a highly replicable and scalable model with this partnership and are thrilled that the Colorado cannabis industry continues to lead the way in sustainability.”

 

"Our Cannabis Cabinet is making sustainability in the industry one of our main Cabinet priorities,” said Jared Polis, Governor of Colorado. “It's incumbent on cannabis industry leadership to demonstrate proactivity on sustainable operations and we appreciate the Cannabis Certification Council and the Marijuana Industry Group coming together to produce a series in support of our goals. We continue to see excitement around our Environmental Leadership Program at CDPHE and hope to see dozens of applications from licensees this year."

 

The Deep Dive sessions are designed for Colorado commercial operators and will cover several core environmental topics beginning with:

 

Organic Waste

March 25, 2021, at 11 am MT

Register Here

 

Water

April 29, 2021, at 11 am MT

Registration coming soon

 

Integrated Pest Management (IPM)

May 13, 2021, at 11 am MT

Registration coming soon

 

For more information about the virtual events, the Best Management Practices Guide, and to learn more about Marijuana Industry Group or the Cannabis Certification Council, please visit www.MarijuanaIndustryGroup.org or  www.cannabiscertificationcouncil.org.



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