History was made in Colorado, guys: Tax revenue from marijuana sales was higher than revenue brought in by alcohol. 

The state raised about $70 million from weed in fiscal year 2014-2015, compared to the less than $42 million from alcohol sales, according to the Marijuana Policy Project. Last Wednesday, Colorado celebrated a “marijuana tax holiday,” where the state suspended marijuana sales for a day. And I guess it was a well deserved break. 

“Marijuana taxes have been incredibly productive over the past year, so this tax holiday is a much-deserved day off,” said Mason Tvert, director of communications for the Marijuana Policy Project, and a co-director of the campaign in support of the 2012 initiative to regulate and tax marijuana like alcohol in Colorado. A similar measure in Arizona is currently gathering signatures to make the ballot for next year’s general election. “This will be the one day out of the year when the state won’t generate significant revenue. Over the other 364 days, it will bring in tens of millions of dollars that will be reinvested in our state.”

Tvert  said it’s crazy to think the state missed out on so much money when it suppressed marijuana into the black market. “It’s even crazier that so many states are still doing it. Tax revenue is just one of many good reasons to replace marijuana prohibition with a system of regulation.”

The nearly $70 million include: $43,938,721 from a 10 percent special sales tax on retail marijuana sales to adults; $25,959,338 from a 15 percent excise tax on wholesale transfers of marijuana intended for adult use. Alcohol-wise: $27,309,606 from excise taxes collected on spirited liquors; $8,881,349 from excise taxes on beer; and $5,646,692 from excise taxes collected on vinous liquors. These figures do not include standard state sales taxes or any local taxes, MPP said.

The Arizona initiative MPP is pushing would allow adults 21 and older to possess limited amounts of weed; cultivate six plants per person or 12 total in a household; establish 15 percent tax on retail marijuana sales, with much of the revenue going toward Arizona schools and public education programs, among other guidelines. MPP recently said they expect to see at least $40 million annually invested in education thanks to the revenue. 

This article appears in Sep 17-23, 2015.

I was born and raised in Guatemala City, Guatemala. I moved to Tucson about 10 years ago. Since I was old enough to enjoy reading, I developed an interest in writing, and telling stories through different...

6 replies on “In Colorado, Marijuana Sales Are Generating More Revenue Than Alcohol”

  1. And, how do you insure that only adults gain access to the MJ? Every teen in town would steal it from mom and dad if they wanted to. Why would anyone buy it ,if your neighbor is growing it and willing to sell an ounce or two.

  2. Jim misses the point entirely!!! What stops kids from raiding the liquor cabinet, getting virtually any variety of people to get it for them … ? After 21+ years as an Army Psych first responder I was NEVER called to the ER, jail, scene, etc and told the commanding officer on site, “Well, unadulterated MJ is your problem!!” NEVER. My experience, and replicated studies show about 70% of ER and police calls are directly related to using, seeking, or withdrawing from ETOH!!!! Tax the crap out of booze and keep MJ legal FOR ADULTS!

  3. What MMP is proposing is setting up a new Department in the AZ government. Nothing like the Alcohol & Tobacco there is now. This proposal goes way beyond the legalization of Marijuana. I allows different local governments to add taxa to allow some cities not to allow Marijuana the business in there cities. This department want to control smoke shops grow shops and internet sells that might overlap these today legal business.

    This New “Department of Marijuana” wants to be immune from all rule making standards and be autonomous to legislative oversight till 2022. To Be honest nobody really know what they are voting for because the rule are not even discussed. This 6 plants is a carrot in front of the ass to pull the cart. Just think 6 plants of what 2 seedling 2 veg state 2 in flower> so if the each produce a very conservative 200 grams you would now have 14.2 ounces and be over the legal limit and according to MPP’s Initiative a felony and since you grew it the added charge of production of a controlled substance. Along if you have them in separate bags intent to distribute just these 2 additional felonies plus whatever else they can add to get a plea bagin.

    These people are asking just way to much this is just an end run to start a Arizona ides of a local DEA. That does not have oversight by other agencies like the Liquor board or the Health Department. We can legalize We Don’t Need MPP’s Department of Marijuana to do it. You Cant put the Genie back in the bottle if this passes there is no REDO Just new regulations. This is not for ARIZONA

  5. “Colorado celebrated a “marijuana tax holiday,” where the state suspended marijuana sales for a day.” Please get your facts right. CO suspended COLLECTION OF TAX on mj for a day — not sales of marijuana. Big difference.

    If Tucson Weekly needs a copyeditor and/or fact checker, I’m available.

  6. Maybe we should just raise all sales taxes across the board? If retail sales taxes were at 45% the State would be just swimming in funds, no?

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