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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.

Sharp Decline in Colorado Cannabis Sales Results in Nearly $100 Million Decrease in 2022 Tax Revenue

MIG Press Release

FOR IMMEDIATE RELEASE

DATE: January 13, 2023

CONTACT: Madeleine Schmidt, 405-822-0533

Sharp Decline in Colorado Cannabis Sales Results in Nearly $100 Million Decrease in 2022 Tax Revenue

As Small Businesses Struggle to Stay Afloat Due to High Taxes and Burdensome  Regulations, Public Programs Relying on Tax Revenue Suffer

DENVER – Recreational and medical marijuana sales numbers released Wednesday by the Colorado Department of Revenue showed a continued downward trend for marijuana sales, resulting in a major drop in revenue for 2022.

While the state collected $423 million in cannabis tax revenue in 2021, numbers released Wednesday show that Colorado gained just $325 million in revenue this past year, threatening critical public programs that marijuana businesses help fund, including housing, mental health, and education.

Sales numbers also released Wednesday showed $130 million in marijuana sales for November (the most recent sales data), down nearly 22% from November 2021 when sales reached $158 million. Medical sales, in particular, have been taking a hit, dropping 39% in November 2022 compared with November 2021. Fed up with financial and administrative challenges dealing with the state’s medical marijuana program, medical patients are turning to the unregulated market to get the care they need.

“For the past year, we have seen small business owners closing their doors and laying off employees as sales plummet,” said Tiffany Goldman, board chair of the Marijuana Industry Group. “Not only are cannabis businesses taxed at a higher rate than any other industry, but they are forced to comply with regulations that can be costly and time consuming. What’s more, the massive dip in medical sales reflects what we’ve been hearing from cannabis patients – that harsh regulations have made it incredibly difficult for them to get the medicine they rely on.

Meanwhile, online hemp producers can sell similar products but with little oversight or regulatory standards, jeopardizing the health and safety of our kids. We need to level the playing field for Colorado cannabis businesses so that they can continue to provide good paying jobs in their communities, contribute tax revenue that funds critical public programs, and ensure patients get the medicine they need.”

The Intoxicating Hemp Task Force created by Senate Bill 22-205 which had been convening since July, submitted recommendations for regulations to the State Legislature at the beginning of this year. Online hemp retailers sell highly intoxicating products with no significant health and safety regulations and no ID requirements to verify the age of the consumer. Legislation is needed to protect public safety and bring regulations in line with the legal cannabis industry.

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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

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