For the first time since recreational cannabis started in 2014 in Colorado, sales are declining on a year-to-year basis. Data released by the Colorado Department of Revenue earlier this month showed a continued downward trend for marijuana sales. In 2021, marijuana sales in Colorado totaled to $2,228,994,553, the Colorado Department of Revenue says. But from January to November of last year, sales only totaled $1,629,673,393. Recent sale numbers show marijuana sales for November were down 22 percent, compared to November 2021 when Colorado marijuana retailers sold $158 million.
Medical sales also dropped by 39 percent last November compared to November 2021. The Marijuana Industry Group, which works directly with policymakers to ensure that Colorado’s marijuana licensing and regulatory program is fair, regulated, safe, and successful, said in a release that medical patients are turning to the unregulated market because of financial and administrative challenges with the state’s medical marijuana program.
“For the past year, we have seen small business owners closing their doors and laying off employees as sales plummet. Not only are cannabis businesses taxed at a higher rate than any other industry, but they are forced to comply with regulations that can be costly and time consuming,” said Marijuana Industry Group Board Chair Tiffany Goldman in the release. “What’s more, the massive dip in medical sales reflects what we’ve been hearing from cannabis patients — that harsh regulations have made it incredibly difficult for them to get the medicine they rely on.”
Goldman said that online hemp producers can sell similar products, but those products have little oversight or regulatory standards. The Intoxicating Hemp Task Force submitted recommendations for regulations to the state legislature at the beginning of the year, according to the release.
“We need to level the playing field for Colorado cannabis businesses so that they can continue to provide good paying jobs in their communities, contribute tax revenue that funds critical public programs, and ensure patients get the medicine they need,” Goldman added.
Colorado’s cannabis tax revenue has also recently dropped. In 2021, the state collected $423 million in cannabis tax revenue. But in 2022, the state only collected $325 million in revenue. Cannabis funds go toward the B.E.S.T. Public School Capital Construction Assistance Fund which builds new schools across Colorado and makes critical repairs in existing schools. Marijuana funds make up about 25 percent of the program’s entire budget. Other programs Colorado’s cannabis funds support includes mental health resources, public safety and health care resources and education, and other programs across Colorado.
Since 2014, Colorado has collected more than $2.2 billion in taxes from the legal cannabis industry. Funding has been used for projects like roofing, heating, air conditioning, and ventilation repairs at K-12 schools in Summit RE-1 School District, a new school for Global Village Academy K-8 in Northglenn, and renovations that addressed health and safety deficiencies for the Crowley County RE-1-J School District.
