New Numbers Show Marijuana Sales Continue to Drop, Medical Sales Lowest Ever Recorded
MIG Press Release
FOR IMMEDIATE RELEASE
DATE: August 10, 2022
CONTACT: Madeleine Schmidt
New Numbers Show Marijuana Sales Continue to Drop, Medical Sales Lowest Ever Recorded
A Sustained Decline in Marijuana Sales Puts Public Programs Relying on Cannabis Tax Revenue at Risk
DENVER – Recreational and medical marijuana sales figures released yesterday by the Colorado Department of Revenue show that marijuana sales are continuing to drop, resulting in a substantial decrease in state and local tax revenue and endangering public programs like affordable housing and education. Medical marijuana sales in particular have taken a massive hit, with the June numbers revealing the lowest medical sales recorded since recreational sales began nearly a decade ago.
Ever-increasing taxes and burdensome regulations, in addition to market forces like inflation, continue to endanger the industry, force small businesses to close, and decrease revenue for critical programs.
“Seeing small cannabis businesses close their doors and patients struggle to access cannabis treatment for conditions like cancer and PTSD is heartbreaking,” said Tiffany Goldman, board chair of MIG. “High taxes and burdensome regulations are pushing this industry to the brink and making it increasingly difficult for Coloradans with critical conditions to get the medicine they rely on. While we’re proud to generate millions in revenue for critical public programs related to affordable housing, education, and mental health, this revenue stream is now at risk.”
The state recorded $146.4 million in total sales for recreational and medical marijuana in June, down from $187.3 million in June of 2021, a 22% decrease. Medical sales saw a particularly sharp drop, with just $19.2 million in sales for June compared to $34.5 million in 2021, a 44% drop. Recreational sales were down 17% percent year over year, from $152.7 million last June to $127.2 million in June of this year.
This drop in sales has delivered a major blow to a critical revenue stream that funds key public programs in Colorado. In 2021, the state had collected $252 million in tax revenue by the end of July. This year, the state has collected only $198.3 million, a $53.7 million or 21% decrease from last year.
Meanwhile, a measure that qualified for Denver’s 2022 ballot last week would impose yet another increase on local cannabis taxes. The measure, called My Spark Denver, would result in a nearly 50% increase in taxes on recreational marijuana sold in Denver and pull funding from existing programs such as homelessness services and affordable housing. By raising prices for consumers, the measure would also risk an even steeper decline in sales and tax revenue overall. This proposed initiative is modeled on Proposition 119 which voters rejected in 2021, with 59 of 64 counties opposing the measure, including Denver.
“Denver voters have already shown support for the cannabis industry at the ballot box, and we’re confident that voters will continue to reject measures that treat the industry like a piggy bank for special projects,” Goldman said. “It’s never been more important to oppose new taxes and regulations in this industry to ensure small businesses can stay open, continue to provide good paying jobs, and fund the programs that already rely on cannabis tax revenue.”
With over 43,000 people directly employed by Colorado cannabis businesses, the marijuana industry is both a critical job provider and source of revenue for the state.
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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: madeleines@strategies360.com