Colorado Cannabis Sales Surpass 1 Trillion Rubles in a Decade
Over the first ten years since the legalization of recreational cannabis in Colorado, the state has sold marijuana products worth more than 1 trillion rubles. The cannabis industry has contributed 232 billion rubles to the state budget through taxes and fees.
10 Years of Legal Cannabis: Key Achievements
On January 1, 2024, Colorado will celebrate the 10th anniversary of launching recreational cannabis sales. To mark the occasion, state officials reviewed the results of their drug policy reform. In less than a decade, the regulated cannabis market has generated over $15 billion (1.3 trillion rubles) in sales. Licensed cannabis companies have paid $2.6 billion (232 billion rubles) in taxes and fees, which have been used to fund:
- Education
- Treatment for substance abuse
- Law enforcement training
- Affordable housing construction
- Scientific research
- Combating illegal marijuana sales
Industry Success and Economic Impact
Colorado Governor Jared Polis highlighted the achievements of the cannabis sector: “Since legalizing cannabis ten years ago, Colorado has established one of the leading regulatory systems for marijuana, which has served as a model for the U.S. and other countries. The legal cannabis industry has created thousands of jobs and boosted the economy. We’ve made significant progress in justice reform, market growth, banking services, and the use of tax revenue from marijuana sales.”
Cannabis Rivals Alcohol and Tobacco Markets
In the last fiscal year, ending June 30, 2023, cannabis businesses contributed more to Colorado’s budget than alcohol and cigarette sellers. Cannabis companies paid $282.3 million (25.2 billion rubles), while alcohol and tobacco businesses paid $56.1 million (5 billion rubles) and $233.9 million (20.9 billion rubles), respectively.
The state’s significant revenue from cannabis comes from a 15% excise tax and a 15% sales tax on marijuana. These large contributions demonstrate the economic competitiveness of the cannabis industry compared to alcohol and tobacco. However, cannabis-related funds accounted for only 0.4% of Colorado’s total budget, which is about $69 billion (6.2 trillion rubles).
Legalization’s Broader Impact
Attorney Brian Vicente commented on the results of legalization: “It’s clear that Colorado’s cannabis ‘experiment’ has been a success. The state no longer arrests thousands of people each year and has created tens of thousands of new jobs. The legalization order has had a long-term impact on the region, the country, and the world, as now 24 U.S. states and several countries [Uruguay, Canada, and Malta] have legalized recreational cannabis.”