Thanks to Marijuana legalization, sales of weed continue to climb to new heights faster than ever. In just eight months, sales of cannabis reached $1 billion in Colorado. Last year, it took nearly 10 months to hit that level.
A billion dollar industry
According to a report from The Cannabist, Colorado marijuana shops recorded $1.02 billion in sales volume from January through August. This total represents a 21 percent increase in year-to-date sales over the same period in 2016 when sales of recreational and Medical Marijuana reached $846.5 million.
Per the report, the state has collected more than $162 million in taxes and fees associated with the cannabis industry.
In August alone, current estimates show consumers spent nearly $137 million for weed, with just a little over $100 million going toward recreational and $36.5 million for medical marijuana. These figures will likely be amended as Colorado’s Department of Taxation is still calculating the sales receipts for August, while also continuing to receive late or incomplete records from cannabis retailers.
Colorado demands more money from cannabis retailers
To further muddy the numbers, Colorado changed the tax structure for weed retailers in July. Recreational marijuana sales tax went up from 10 percent to 15 percent after a new law removed the standard 2.9 percent state sales tax on recreational products.
The law did not affect medical marijuana, which is still subject to the 2.9 percent rate. With this change, revenue reports from the Department of Taxation will need to be corrected to reflect the new higher rate.
Sales likely to grow but at a slower pace
While the fast expansion of the marijuana industry seems impressive, the market is still relatively young, and rapid growth is to be expected at first.
However, many economists believe annual sales will ultimately even out and slow a bit as the industry develops and other states enact their own weed legalization laws.
In 2000, Colorado legislators approved medical marijuana, followed by recreational 12 years later with Amendment 64. Colorado’s first recreational pot shops began operating in January 2014.
Presently, eight states and the District of Columbia have legalized recreational weed. Medical cannabis is legal in 29 states, Puerto Rico, and Guam. Nationwide, the marijuana industry is expected to reach $24 billion in annual sales by 2025.
