Continued Decline in Cannabis Sales Threatens Small Businesses, Tax Revenues
MIG Press Release
FOR IMMEDIATE RELEASE
DATE: December 14, 2022
CONTACT: Madeleine Schmidt, 405-822-0533
Continued Decline in Cannabis Sales Threatens Small Businesses, Tax Revenues
Record Low Cannabis Sales Continue to Put Small Businesses, Jobs, and Cannabis Tax Money at Risk
DENVER – Recreational and medical marijuana sales numbers released yesterday by the Colorado Department of Revenue showed continued, steep sales declines for marijuana. The drop in sales means the State of Colorado is on track to collect $100M less in tax revenue from marijuana in 2022, threatening critical public programs that marijuana businesses help fund.
Numbers released Monday showed $142 million in marijuana sales for October, the most recent data. That’s a 19.5% decrease in sales from October in 2021. Marijuana sales have now declined consistently for more than a year, forcing layoffs and endangering a critical source of tax revenue for the state as well as the businesses that provide them. The state collected $24.5 million in cannabis tax revenue in November, compared with $32.9 million in November of last year, a 25.5% decrease.
“The hundreds of small business owners that make up Colorado’s cannabis industry are being pushed to the brink with a continued decline in sales and ever-increasing taxes and regulations that make it incredibly difficult to keep their doors open,” said Tiffany Goldman, board chair of the Marijuana Industry Group. “Unfortunately, we have been hearing from our members that they are facing layoffs if this troubling trend continues, putting thousands of good paying jobs at risk. Not only that, but with this projected $100 million decrease in tax revenue, we will see real impacts on projects and initiatives that are funded by cannabis revenue, from housing to mental health to education. Moving forward, we need to oppose burdensome regulations and tax increases that put small businesses at risk.”
While regulated cannabis sales are hitting record lows, online hemp producers continue to sell highly intoxicating products with no significant health and safety regulations and no ID requirements to verify the age of the consumer. The Intoxicating Hemp Task Force created by Senate Bill 22-205 has been meeting since July to create recommendations for regulations to the State Legislature regarding intoxicating hemp products.
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About MIG: MIG was founded in 2010 by cannabis business owners and supporters who wanted to help craft Colorado’s earliest medical marijuana regulatory framework. MIG is the oldest and largest trade association for licensed cannabis businesses. Comprising approximately 500 business licenses, MIG has strong representation and connections across the state
Additional Info
Media Contact : Madeleine Schmidt