Since the legalization of Marijuana in Colorado, the state’s billion dollar industry has been booming rapidly. Legal marijuana business in Colorado is now a flourishing industry in the state. The very first eight month of 2017 stand testimony to this fact. August 2017 was the month when legal marijuana sales in Colorado hit the $1 billion dollar mark – two months too early than the year past.
Last year, in 2016, sales had reached $1 billion in ten months, i.e. in October 2016.
The Upward Trend of Marijuana Business in Colorado in 2017
Upward was the dominant trend in 2017, with some minor dips during these eight months. The retailers registered total sales to the tune of $1.2 billion by the month of August. This includes both marijuana as medicine and a recreational drug.
The figures have been derived from the Colorado marijuana tax revenue data that the state released on Wednesday. In comparison to the first eight months of the year 2016, the year-to-date sales are up by as much as 21 percent. The highest sale by August 2016 was $846.5 million.
2017 and Marijuana Tax in Colorado
Marijuana, has thus, generated total tax and fees that amount above $162 million, as of now. These fees and taxes include both medicinal as well as recreational sales of the drug. These figures are from the latest report that the Colorado Department of Revenue remitted in Sept 2017. The cumulative sales mainly reflect the sales in August. However, we must leave some margin for late or incomplete returns pending from previous months.
Since the tax on the sale of marijuana as medicine and recreational drug is a very new one, it is still in transition. This is why the monthly report comes with certain conditions. October, in fact, is the second ever month to see a different tax structure for marijuana sales.
Whereas Colorado enjoyed a 10 percent tax till July 2017, August saw it rise to 15 percent. This comes as consequence of exempting 2.9 percent as standard sales tax on products containing recreational marijuana. However, there is still no exemption of this 2.9 percent tax on medical marijuana and accessories.
The month of August alone accounted for $100.3 million from recreational marijuana. The sales from medical marijuana were however, much lower – $36.5 million. Both included edibles, flowers, accessories as concentrates.
The Future of Marijuana Business in Colorado
Looking at the past trends (which are very recent, of course), the present state of marijuana production and legal statutes on the trade, experts predict a moderate future. State officials as well as expert economists are of the view that despite the promising sales this year, the future will witness moderate sales. The reason is that as the time passes, the local market will ultimately achieve maturity, thus throwing in an excess of cannabis. Also, the state will ultimately adopt measures to manage the recreation cannabis market in due course of time. All the factors only point at moderate and stable marijuana sales in near future.