FOR IMMEDIATE RELEASE
DATE: April 13, 2022
CONTACT: Madeleine Schmidt
Marijuana Industry Group Responds to Drop in Cannabis Sales
Medical marijuana sales drop 37% in February as industry grapples with high taxes and increasing regulations
DENVER – Sales figures released Monday by the Colorado Department of Revenue show a steep drop in cannabis sales for the month of February, continuing a troubling trend for a critical Colorado industry. Medical sales in particular are plummeting as business owners and consumers grapple with ever increasing taxes and regulations.
The state recorded $145.3 million in total sales for recreational and medical marijuana in February of this year compared to $167 million in February of 2021, a 13% drop. Medical sales in particular plummeted, with the state recording $20.3 million in medical sales for February of this year compared to $32.5 last February, a 37% drop.
“These sales figures reflect what we hear from our members every day – that small cannabis businesses are struggling to keep up with sky high taxes and regulations that make it difficult to do business in Colorado.” said Tiffany Goldman, Board Chair of the Marijuana Industry Group. “As a mother and small business owner myself, I am particularly troubled by the drop in medical sales and that we are making it increasingly difficult for Coloradans who rely on medical cannabis to access the treatment they need. We cannot overregulate the industry out of existence and deny life-saving medicine to patients.”
A new law that went into effect at the beginning of the year is impacting the medical market, making it much harder for patients to access life-saving medicine. While this new law may have been well-intentioned in keeping cannabis out of the hands of young people, it has had devastating consequences for patients, medical clinics, and doctors who offer critical treatment for Coloradans with difficult-to-treat conditions.
Cannabis sales dropped significantly in January as well. The state recorded $151.1 million in sales for January of this year, a 19% drop compared to January 2021. In particular, medical marijuana sales dropped by nearly 40%.
Small cannabis businesses in Colorado are facing serious financial challenges including a state tax rate of 30% in addition to local taxes and fees, a federal tax rate of over 70%, and a growing list of regulations that are costly and time-consuming to comply with. In January, revenue from the legal cannabis industry surpassed $2 billion, funding which was used to construct and repair schools, support mental health and addiction programs, and fund public safety, health care resources, and education.
“I’m proud of the critical contributions our state’s cannabis industry has made to causes Coloradans care about like education, mental health care, and public safety, but the reality is that small businesses are being stretched to a breaking point,” Goldman said. “We need to ensure Colorado cannabis businesses can stay afloat, keep generating tax revenue, and provide critical treatment to medical patients for many years to come.”
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. Comprised of approximately 400 licensed businesses, MIG has strong representation and connections across the state. MIG advocates on behalf of the rapidly evolving needs of the regulated marijuana industry in Colorado with a reputation for innovative policy making and getting results for the state’s cannabis community.
Media Contact : Madeleine Schmidt, firstname.lastname@example.org