CO Legalized MJ Tax Revs Ahead of Expectations
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CO Legalized MJ Tax Revs Ahead of Expectations
Posted by CN Staff on April 12, 2014 at 07:59:42 PT
By Robin Respaut, Reuters
Source: Reuters
Reuters -- Colorado, the first state to tax legalized recreational marijuana sales, expects to bring in an estimated $98 million in revenue this year, exceeding the state's original expectations by 40 percent. The state began levying sales and excise taxes on recreational marijuana on January 1, 2014. Moody's Investors Service, in a report released Friday, said legal sales in Colorado will reduce the size of the black market and revenue from legal sales will mean more tax payments flowing into state coffers.
The funds are slated for treatment, school construction and deterring young people from using the drug. School districts will likely get $40 million, or nearly 30 percent, of the projected $134 million in total marijuana tax revenues. New revenues will only make up 1.4 percent of the state's available general fund."There's been a lot of buzz around legalization," said Andrea Unsworth, a Moody's analyst. But she cautioned that tax revenues were "still a very small fraction of the state's overall budget. It's not going to sway things too much in one way or another."Colorado imposed a 15 percent excise tax on wholesale marijuana and a 10 percent sales tax on retail sales. That's in addition to a pre-existing 2.9 percent tax on medical marijuana. Local governments will keep 15 percent of sales tax revenue, while the rest of the money will stay with the state.Tax collections started off slowly this year, only totaling $7.5 million or $45 million if amortized to the full year. But Moody's said the new revenues are likely significantly understated in the long term because only a limited number of retail facilities had opened, growers had not yet met buyers' demand, and many local jurisdictions had yet to issue licenses.Moody's projected that the decriminalization of marijuana would likely reduce policing costs, although other enforcement expenditures might also arise. The net effect is uncertain.In March, the Colorado Association of Chiefs of Police asked the governor for 10 percent to 15 percent of marijuana's total tax revenues, citing the need to police unlicensed sales of the drug, diversion to other states, and drivers under the influence of marijuana, among other costs, the report noted.The only other state to legalize recreational marijuana, Washington, will begin marijuana sales in June.Reporting By Robin Respaut; Editing by Jonathan OatisSource: Reuters (Wire)Author: Robin Respaut, ReutersPublished: April 11, 2014Copyright: 2014 Thomson ReutersCannabisNews  -- Cannabis Archives 
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Comment #4 posted by BGreen on April 13, 2014 at 07:58:35 PT
Hope re: post #1
I thought after the fallout from Operation Green Merchant back in the '90s that this kind of nonsense had diminished. The audacity of extrapolating a single purchase of a legal product into anything criminal is mind blowing.As Gandhi said, "first they ignore you, then they laugh at you, then they fight you, then you win." This is the desperation of a once powerful despot throwing every weapon in their arsenal at us in their petulant refusal to recognize the truth and accept the obvious ... they lied about cannabis, nobody died from cannabis and we win.Bud
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Comment #3 posted by FoM on April 12, 2014 at 18:41:30 PT
Thousands Turn Out for Extravaganja
AMHERST, Mass. (WGGB) — Thousands turned out to Amherst’s Town Common for “Extravaganja,” a political rally, organized by the UMass Cannabis Reform Coalition.There were people, speakers, and musicians, all supporting the legalization of medical marijuana.“It should be legal, it’s absolutely absurd that it’s not. The fact that people, especially minorities, get arrested all of the time, is ridiculous. The science is out there, people just have to look,” said Anthony Medina, of Springfield.The tone of the event was a lot calmer than March’s Blarney Blowout at UMass.Organizers say, that’s because a little planning goes a long way.“We get permits from the police and the town, to basically hold the vent here. We work with the police and paramedics, to make sure everyone is safe, to provide a safe enviroment, considering how large scale it is,” explained Sebastian Vivas, President of the UMass Cannabis Reform Coalition.“Extravaganja” draws people from all walks of life, from all over New England. And organizers say there are benefits to the community.“The businesses really support us, they love the business, they love the crowd it attracts,” Vivas said.Complete Article:
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Comment #2 posted by FoM on April 12, 2014 at 14:45:38 PT
I know they did this before but I didn't hear of it for years and I thought they stopped it.
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Comment #1 posted by Hope on April 12, 2014 at 13:10:17 PT
And yet...
DEA Raided This Woman's House After She Shopped At A Garden Store
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