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Pot revenues jump in Colorado

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Illinois

Colorado marijuana shops in September reeled in $127.8 million in sales of medical and recreational cannabis, notching a new revenue record for the third consecutive month, according to newly released data from the Colorado Department of Revenue.

So far this year, sales have topped $974.3 million in nine months, about $22 million shy of the $996.2 million revenue totaled for the entirety of 2015. This time last year, September monthly sales were $94.7 million — $38.3 million from medical marijuana and $56.44 million from recreational marijuana — and year-to-date sales were nearly $733.8 million.

The sales jump this time around can be attributable to soaring recreational marijuana sales. In September, medical marijuana sales were $39.6 million while the portion of sales coming from recreational purchases was $88.2 million — the highest-ever monthly total for adult-use sales.

The September 2016 sales generated about $19.2 million in tax revenue for the state, bringing the year-to-date total for taxes and licensing fees to $144.2 million.

* I went to Denver last weekend on a spur of the moment break just to get the heck outta here for a bit. The flight was cheap, the hotel wasn’t bad and the steaks were awesome. Denver is not a very walkable city, but I liked it.

And unless you went to a couple of different “hipster” strips, the pot shops were practically invisible. Yeah, I smelled it walking down the street a couple of times, but I’ve smelled pot in Bucktown, too. So, really, if you weren’t looking for it you didn’t notice it.

One reason for that is people aren’t legally allowed to consume the product in public places. You have to smoke it in your home. So, if you don’t live in Denver or live in a building that forbids smoking, you have to smoke it on the sly. My hotel, for instance, imposed $500 fines and immediate evictions if caught smoking weed in your room or even on your room’s balcony. Of course, regulating the public consumption of “edibles” is a lot tougher.

* But Denver’s voters just approved a public consumption ordinance by a 53-47 margin. So things are about to change…

Just about any kind of business other than a dispensary could apply for a cannabis consumption permit so that people could use marijuana in a designated consumption area within that business. Participating locations must follow the Colorado Clean Indoor Air Act, which means tobacco businesses could allow smoking indoors, but other businesses could only allow smoking on patios that aren’t near the main entrance or visible from the street.

The business will need the support of a neighborhood organization or business district to obtain a license. The city doesn’t currently have a mechanism in place for getting that type of neighborhood approval for an application, [Dan Rowland, city spokesman] said.

Rowland said he’s unsure when the city will start issuing licenses, but he doesn’t have any reason to think it won’t be sometime in 2017.

Once in place, pot-friendly locations will give tourists, people who live in federally subsidized housing, people whose landlords or HOAs don’t allow smoking and people who just want to consume somewhere other than the comfort of their living room a legal place to do so.

Even with the restrictions, pot tourism is already a big thing out there. Every waiter I had assumed that’s why I was in town (maybe it’s the beard). But public consumption will surely attract more people, as long as they work to keep everything reasonable.

* A legalized, regulated and taxed production, distribution and consumption chain is the ideal way of doing things. If you buy weed in Denver you’re not supporting criminals. Thumbs up!

posted by Rich Miller
Thursday, Nov 17, 16 @ 12:05 pm

Comments

Rich - it’s okay to admit if you partook in such activities. Now that Mal’s gone this is a no judgment zone.

I’ve got some friends who live in the Denver area. They’ve told me how much of a boon it is and said that the fears that Denver would turn into Amsterdam were obviously more “Reefer Madness” type hyperbole and fear-mongering.

Comment by Team Sleep Thursday, Nov 17, 16 @ 12:13 pm
Full-out legalized weed would be a giant step in the right direction for Illinois, but of course, it makes too much sense for our politicians to embrace.

Comment by Just Observing Thursday, Nov 17, 16 @ 12:13 pm
Illinois is too stupid to have reasonable pot laws.

Comment by Ron Thursday, Nov 17, 16 @ 12:13 pm
===fears that Denver would turn into Amsterdam===

They wish. Amsterdam is one of the cleanest, safest cities I’ve ever visited.

Comment by Rich Miller Thursday, Nov 17, 16 @ 12:16 pm
Jobs check
Tax Revenue check
Tourism check

Not a lot of downside which is why Illinois will never consider it.

Comment by Generation X Thursday, Nov 17, 16 @ 12:20 pm
That was one of the things I read from “family values” groups when Colorado was considering legalizing (and thus normalizing) pot: it would turn into (in their words) a moral cesspool and become a modern Sodom & Gomorrah. The IFI’s and other Illinois groups act like the recent crime relaxation bills will be the worst thing ever.

Comment by Team Sleep Thursday, Nov 17, 16 @ 12:23 pm
Plus you get to be a regional tourist attraction.

Comment by NoGifts Thursday, Nov 17, 16 @ 12:23 pm
So how much tax does the state, county or town receive? How much does each entity make on licensing places to allow for smoking, and how much cost in terms of DUI arrests or other social consequences is there to the state?

Comment by DuPage Saint Thursday, Nov 17, 16 @ 12:25 pm
DS, you ever heard of the Google?

Comment by Rich Miller Thursday, Nov 17, 16 @ 12:31 pm
Wow, legalized weed and a flat state income tax rate. Oh, the possibilities!

Comment by City Zen Thursday, Nov 17, 16 @ 12:34 pm
Seriously, why doesn’t the GA or the Senate get a bill going for legalized marijuana? Even with democratic governors it didn’t happen. Is Madigan and/or Cullerton against it?

Comment by BK Bro Thursday, Nov 17, 16 @ 12:44 pm
BK Bro, Madigan is still stuck in 1994 on too many issues, including this one.

Comment by Rich Miller Thursday, Nov 17, 16 @ 12:48 pm
Question? Has alcohol consumption gone down over that period? If it has, how has the alcohol tax revenue been offset by the pot tax revenue? If alcohol consumption has gone down have DUI arrests also gone down?

Comment by anon Thursday, Nov 17, 16 @ 12:52 pm
===Question?===

Try the Google first. Some of us have jobs.

Comment by Rich Miller Thursday, Nov 17, 16 @ 12:54 pm
I’d love to see Frito-Lay’s sales in the region over the same time periods. LOL.

Comment by Ken_in_Aurora Thursday, Nov 17, 16 @ 12:59 pm
So all of my high school civics teachers were wrong and states can ignore federal laws. That whole Civil War was wrong and laws and court rulings are just suggestions. It truly is the Age of Aquarius.

Comment by weltschmerz Thursday, Nov 17, 16 @ 1:03 pm
I do not know how Colorado shares Sales tax and Income tax revenue. However the State is collecting a 25% sales tax. I have not noticed liquor sales decline. If individuals are substituting weed for alcohol it may be muddied by the out of state tourists having a beer with dinner. I have not noted a lapse in liquor sales, but it is early.
In Illinois a 12.99 cent bottle of liquor has a $1.70 in excise tax. If it were taxed like weed in Colorado, the tax would be twice as high. Or if it were taxed like in Washington, it would be almost four times greater.
Colorado has reduced by half the number of arrests. So law enforcement is able to work on more important stuff.

Comment by yeah Thursday, Nov 17, 16 @ 1:04 pm
We are witnessing the slow repeal of another failed prohibition across the country. I’d say Illinois is still 5 years away from recreational cannabis unless you can get a GOP member to sponsor the bill and get some GOP colleagues to vote with them. The Dems want the revenue but don’t want this held over their heads come election season. The GOP wants the revenue and jobs but needs to keep their moral high ground. An agreement not to use this issue in campaign ads is the only way i see full legalization happening anytime soon unfortunately since the campaign warfare we have in this state is brutal.

Comment by frisbee Thursday, Nov 17, 16 @ 1:10 pm
I would think that the effect on crime would be an important aspect as well.

Comment by RetiredStateEmployee Thursday, Nov 17, 16 @ 1:15 pm
hey weltschmerz, as long as you’re appealing to history: the end of alcohol prohibition also began with defiance by the states, and that was a constitutional amendment!

Comment by Homer J. Quinn Thursday, Nov 17, 16 @ 1:18 pm
And in Illinois, where one of strongest industries is agriculture, no movement in legal cannabis.

Comment by Rogue Roni Thursday, Nov 17, 16 @ 1:22 pm
===states can ignore federal laws===

I do not believe there is a federal law specifically prohibiting states from doing this.

Comment by Rich Miller Thursday, Nov 17, 16 @ 1:22 pm
It’s against the Constitution to smoke weed?

Comment by Ron Thursday, Nov 17, 16 @ 1:22 pm
Not coincidentally, Denver venues hosted three Phish concerts and Riot Fest over Labor Day weekend.

Comment by Benniefly2 Thursday, Nov 17, 16 @ 1:25 pm
Rich is getting sassy today.

Comment by Rogue Roni Thursday, Nov 17, 16 @ 1:29 pm
Hey Benniefly2, FYI, Phish was playing 3 nights over Labor Day weekend BEFORE weed was legalized there.

But whatever…stereotypes are fun, right?

Comment by NoJoke Thursday, Nov 17, 16 @ 1:30 pm
“I do not believe there is a federal law specifically prohibiting states from doing this.”

This is technically true but obscures the broader issue: every person involved in producing, distributing and consuming cannabis on the state level is still breaking federal law. In fact, here in Illinois, the forms required to participate in the Medical Cannabis Pilot Program as an owner, employee or patient have individuals confirm that they know that they will be breaking federal law on a daily basis. Any existing protection under federal law only exists because of:

1) DoJ memoranda outlining enforcement priorities (the “Cole memo”)
2) The Rohrbacher federal approp amendment which currently prevents the DoJ and DEA from spending funds to enforce federal law in states with medical or adult-use cannabis laws, which is due to expire in Dec if not renewed
3) Court rulings which have upheld the principle that while the states cannot outright nullify federal laws or their enforcement by the federal government, they cannot be compelled to enforce those laws directly and they cannot be compelled to pass a particular state law (see: budgetary armtwisting over federal highway funds to get states to raise the legal alcohol age to 21).

Since 98-99% of all drug enforcement happens at the state and local level, states have a lot of leeway as long as the feds have decided to keep their noses mostly out of it, but that could easily change depending on what happens with the next omnibus budget bill and who the next US AG is.

Comment by Ali Nagib Thursday, Nov 17, 16 @ 1:46 pm
We have the highest state debt in the country and we are ignoring a giant source of revenue.

Manufacturing jobs can move to anywhere you can build a factory. But agricultural jobs are going to be where the land is located. Illinois has the most and best farmland in the Midwest.

Comment by A Jack Thursday, Nov 17, 16 @ 1:49 pm
Yes A Jack, this. Manufacturing ain’t coming back to Illinois. With automation and the resulting jump in productivity manufacturing will never employ the amount of people it did in the 50s and 60s. The politicians selling this to the American people are selling a pipe dream.

Comment by Rogue Roni Thursday, Nov 17, 16 @ 1:55 pm
Thanks Ali Najib.
I never understood why it took a Constitutional Amendment to ban alcohol but drugs can be banned by statute.

Comment by Last Bull Moose Thursday, Nov 17, 16 @ 1:55 pm
If Illinois legalized pot, we would be able to pay off the IL’s pension debit. Plus we wouldn’t have to increase taxes. I heard CO no longer has an income tax due to the revenue it received from legalizing pot. Looks like a Win - Win to me. Come on governor - legalize pot - my painful joints will thank you.

Comment by Mama Thursday, Nov 17, 16 @ 1:58 pm
“I’d say Illinois is still 5 years away from recreational cannabis”

Unfortunately, Illinois has been five years away from legalized weed for more than 20 years.

– MrJM

Comment by @MisterJayEm Thursday, Nov 17, 16 @ 1:58 pm
I am told that we reportedly need tax revenue, yet the idiots in Springfield can’t do something that just no one.

Comment by Ron Thursday, Nov 17, 16 @ 2:01 pm
===bringing the year-to-date total for taxes and licensing fees to $144.2 million.===

That could go a long way towards the budget deficit. Just sayin’.

Comment by Boone's is Back Thursday, Nov 17, 16 @ 2:17 pm
Boone, grab your calculator as see what percent or $10 billion $144.2 million is.

Comment by Postbot 6000 Thursday, Nov 17, 16 @ 2:33 pm
I hope it is not legalized in Illinois. The negative health effects of Marijuana normalization are often overlooked.

Comment by Saluki Thursday, Nov 17, 16 @ 2:46 pm
It is not just the increased revenue. It is not spending a bundle to apprehend, haul downtown, process, bail out, prosecute and then warehouse for years at $50k a year per offender.

Comment by yeah Thursday, Nov 17, 16 @ 2:51 pm
And legalized marijuana would make living through the Rauner-Trump era a lot more bearable for most Illinoisans who are not very happy about it.

Comment by Chucktownian Thursday, Nov 17, 16 @ 2:54 pm
People smoke pot now, legalizing, regulating and taxing is rational.

Comment by Ron Thursday, Nov 17, 16 @ 2:58 pm
Saluki,

Which “negative effects” would that be?

Because we can go on for pages about the “negative effects” of prohibition.

Comment by NoJoke Thursday, Nov 17, 16 @ 3:02 pm
stop the presses everyone, saluki has some indisputable scientific evidence about the evils of cannabis! let’s see those studies, let’s see that research, show us the numbers…

Comment by Homer J. Quinn Thursday, Nov 17, 16 @ 3:08 pm
“Amsterdam is one of the cleanest, safest cities I’ve ever visited.”

Agreed. I’ve been there many times and always stop there when I’m traveling elsewhere. I just love the Dutch people’s MYOB attitude.

We have antediluvians in both parties here in Illinois. It shows with our most restrictive MMJ program. It’s too bad, because Illinois is more than twice as large as Colorado, population-wise. That’s a lot of potential sales/tax revenue potential–especially sales revenue.

Comment by Grandson of Man Thursday, Nov 17, 16 @ 3:08 pm
It will be a much better world when everyone is stoned all the time.

Comment by jim Thursday, Nov 17, 16 @ 3:28 pm
Canada is going to legalize pot by the end of 2017 - already you see lots of 19-20 year olds in Windsor (across from Detroit) from the states because the drinking age is 19.

Comment by lake county democrat Thursday, Nov 17, 16 @ 3:32 pm
In Colorado, the state doesn’t really ’share’ sales tax revenues as far as I know. Each municipality sets its own rates and collects the taxes due directly from the businesses, so figuring out how much sales tax revenue has been generated state-wide is kind of hard.

That said, if you look at the City & County of Denver’s CAFR for 2015, you’ll find out that marijuana sales tax revenues in 2015 totalled about $22.5 million, up from about $17 million in 2014 (first year with legal recreational sales).

In contrast, sales taxes from eating and drinking establishments are up to $101 million in 2015 from $94.5 million in 2014 and $85 million in 2013. Auto dealers have gone up to $62 million from $55.5 in 2014 and $50 in 2013. The general city sales tax rate is 3.65%, while the city assesses 7.12% for retail marijuana.

Comment by jerry 101 Thursday, Nov 17, 16 @ 3:52 pm
Also, with regards to the public consumption thing, it’s going to be difficult to open a place that allows for public consumption. There are a ton of hoops to jump through, including obtaining documented support of local residents.

Having lived here for a good two years now, the day to day impact of legal weed is pretty minimal. There hasn’t been a big problem with weed-related DUI’s. There has been an uptick in crime, but it’s debatable whether that has anything to do with weed. Police indicate it’s not, but some people still argue otherwise.

Biggest problem is with the surge in the homeless population. Homeless people finding their way here because its legal. People with records relocating here thinking they can work in the weed business (they can’t), then becoming homeless because they can’t get a job. Travellers. People with mental illness moving here because weed helps with their issues, but then becoming homeless.

I think Denver’s always had a relatively high homeless population due to a historically relatively friendly legal and social climate toward the homeless combined with the mild year round weather, but the population of homeless people has gone through the roof.

I think Colorado would love to see the rest of the country legalize it, even though we’d lose a lot of weed tourism money, because we’d see that homeless magnet dissipate. We’re the only state between the coasts where its legal, so we’re a pretty popular place to go.

Comment by jerry 101 Thursday, Nov 17, 16 @ 4:00 pm
IL needs to legalize it for recreational purposes before MO, KY, IN, WS, OH, MI or any other neighboring states do.

Comment by gdubya Thursday, Nov 17, 16 @ 4:14 pm
I’m not a big fan of the increased consumption that will come with legalization.

But the reduction in violence and imprisonment is worth it. Not even close.

Comment by Ebenezer Thursday, Nov 17, 16 @ 4:16 pm
@ Mama
===I heard CO no longer has an income tax due to the revenue it received from legalizing pot. ===

Sorry, Colorado’s state income tax rate is a flat 4.63% of your federal taxable income.

It’s a modest source of revenue, we don;t really want a world where people are spending so much money on pot that you can fund all of state government off of it.

(Unless you are Doritos.)

Comment by Anonymous Thursday, Nov 17, 16 @ 4:23 pm
yeah @ 2:51 pm- “…It is not spending a bundle to apprehend, haul downtown, process, bail out, prosecute and then warehouse for years at $50k a year per offender.”

Saving money is not relevant to the good folks in small town Illinois who want prison jobs. Less young people being set on the path to prison due to any sort of pot legalization is a downside for the profusion of police unions that have the Good Old Boy element (both Dems and Repubs) in the IL legislature in their pockets.

For evidence of this nexus between police unions and the legislature, look at the IL bill (reported here on CapFax, but forgot the bill number) that outlawed traffic ticket quotas. If I remember the roll call correctly, the only guy who voted against it was Sen. Tim Bivins, the former Lee County Sheriff. Once a cop, always a cop.

Comment by Payback Friday, Nov 18, 16 @ 12:01 am