Cannabis Sales Continue to Decline by the Millions in 2023, Threatening Small Businesses, Tax Revenues
MIG Press Release
FOR IMMEDIATE RELEASE
DATE: April 17, 2023
CONTACT: Erin McCann Ciani
303-746-2365
Cannabis Sales Continue to Decline by the Millions in 2023, Threatening Small Businesses, Tax Revenues
As Businesses Struggle to Stay Afloat, Public Program Continue to Suffer
DENVER, CO – Recreational and medical marijuana sales numbers released last week by the Colorado Department of Revenue showed a continued, steep sales decline for marijuana. Tuesday’s numbers showed $124 million in marijuana sales for February, the most recent data, down from more than $145 million in sales in February of 2022. That’s a 14.2% decrease for marijuana sales from February 2022 overall, including a 12.7% year over year decrease in recreational sales and a 23.7% decrease in medical sales. Cannabis sales were down nearly $100 million in 2022, compared with 2021.
This decline also impacts state tax collection. Colorado collected 19% less in cannabis tax revenue in March 2023 versus March 2022, putting at risk critical public programs that marijuana businesses help fund including housing, mental health, public safety, and education.
“Our industry supports thousands of jobs and public programs that Coloradans care about like affordable housing, public safety, mental health and addiction treatment, education and more,” said Tiffany Goldman, board chair of the Marijana Industry Group (MIG). “Unfortunately, cannabis small business owners will not be able to withstand continued increases in taxes and regulations, dated and draconian federal regulations, and a growing unchecked and unregulated intoxicating hemp industry for much longer. We are already seeing business owners close their doors and leave Colorado, taking critical jobs and tax revenue with them.”
According to the Vangst 2023 Jobs Report, Colorado lost 10,481 cannabis jobs last year.
Last week, Colorado lawmakers introduced Senate Bill 271 sponsored by Senator Kevin Van Winkle (R-Highlands Ranch) and Senator Dylan Roberts (D-Avon) to take critical action to rein in the intoxicating hemp market, which sells hundreds of millions of dollars in completely unregulated, untaxed products annually without ID checks, purchase limits, or safety restrictions. Under current law, kids can purchase these products, often shaped like popular candy, online and have them shipped anywhere or even pick them up at a local gas station or grocery store.
Senate Bill 271 currently requires that any hemp product with more than 2.5 mg of THC be regulated, meaning it will require a legal ID to purchase and be sold at a dispensary rather than online or at a convenience store, however this number will likely be reduced. It also gives authority to the Colorado Department of Public Health and Environment to regulate potentially intoxicating cannabinoids, including creating public safety rules for packaging, labeling, and appropriate tracking.
###
Additional Info
Media Contact : Erin McCann Ciani