When it comes to Cannabis legalization, the state of Colorado stands as a tall example of how any state govt. and residents can profit from it. The legalization of cannabis in Colorado has now made the state a role model for other states that are mulling over the issue of legalizing cannabis.
Apart from those benefitting from its medical use, there is one factor that is doing something for the greater good – taxes. With taxes on cannabis Colorado is becoming a financially stronger state each passing day. July 2017 saw the increasing of the taxes on marijuana from 10% to 15%. But, the govt. is not hoarding all that in its coffers.
The tax surplus that the sale of medical and recreational marijuana has produced, due to the increase in the tax percentage is now aiding other expenditure on public welfare. It is the underfinanced schools and the inflated pensions that are profiting from these taxes. This drug that is widely debated as a vice for the society, is now funding the areas where more money is needed. This is how the state government is involving the taxes on cannabis in Colorado
Taxes on Cannabis is Colorado So Far
Since the taxation of marijuana in February 2014, Colorado has successfully collected $573,591,933 as taxes as well as license and fees on marijuana till September 2017. This is so much higher than even the State Lottery. To top it, this figure doesn’t include the revenue collected from city and county fees and taxes that marijuana businesses in Colorado need to pay to be a part of the industry.
With taxes on cigarettes and alcohol, tax on cannabis in Colorado ready to join the category of “sin tax”. This revenue will ultimately flow into all the states and cities where marijuana is legal. The time is near when other states that still haven’t legalized marijuana will soon feel inspired to fund their pensions and schools with these taxes. The way in which with taxes on cannabis Colorado is managing its public welfare funds indeed exemplary for other American states that are still to take up the issue of legalizing marijuana.
Following the Example of Colorado
The State California is the next to follow the footsteps of Colorado in legalizing and taxing cannabis production and sale. 56% of Californian voters voted in the favor of passing Prop 64 (legalizing of marijuana). This state, which is expected to be the largest producer and supplier of marijuana in the United States of America, is due to bring in effect state licensing from 1st January 2018.
California will also make use of handy software to “track and trace” the production of cannabis. This will be shared with the state so that their share of taxes can be paid to the right tune.
Moral of Marijuana
Cities like Colorado and California have realized that the demand for marijuana is only ever-growing. This means that that the taxes from the production and sale of this drug can be very rewarding. Evidently, they do not want to miss out on this opportunity. Just like cannabis Colorado taxes, other states are also rea