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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.

On 4/20, the Marijuana Industry Group Continues Safe Driving Partnership with Public Safety Groups

MIG Press Release

FOR IMMEDIATE RELEASE

DATE: Wednesday, April 20, 2022

CONTACT: Madeleine Schmidt

 

On 4/20, the Marijuana Industry Group Continues Safe Driving Partnership with Public Safety Groups 

MIG Encourages Cannabis Users to Plan Ahead for 4/20, Get Home Safe

 

DENVER – This 4/20, the Marijuana Industry Group is providing 250 free Lyft vouchers at 4/20 events to ensure cannabis users get home safe and protect their neighbors. In partnership with the Colorado Department of Transportation (CDOT) and AAA of Colorado, these Lyft vouchers are part of an educational campaign highlighting the risks of driving while high.

This partnership to reduce impaired driving between CDOT and MIG dates back six years, as the marijuana industry has been dedicated to protecting public safety since marijuana was first legalized. In 2021, MIG partnered with Mothers Against Drunk Driving (MADD) to reinstate $2M in funding to CDOT to battle impaired driving. CDOT also provides training and resources to MIG members to educate budtenders about laws and consequences of driving while high, with resources to pass along to cannabis consumers. 

 

“Since day one, the marijuana industry has prioritized public safety which is why we are proud to continue partnering with organizations like CDOT, AAA of Colorado, and MADD to ensure that cannabis users are making safe decisions for themselves and their communities,” said Truman Bradley, Executive Director of the Marijuana Industry Group. “We are proud to be offering Lyft vouchers this 4/20. As our communities start to open up again post-pandemic, it is even more important this year that we are doing everything we can to protect our neighbors by encouraging marijuana users to plan ahead and never drive high.”



 


 

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