The state of Colorado has reported a new revenue record for marijuana sales in 2021. The report, published by The Center Square, includes those numbers and further data regarding tax and fee revenue collected since marijuana was legalized in 2014.
Over $12 Billion in marijuana sales and $1 Billion in taxes have been collected in Colorado since cannabis was fully legalized in 2014. Furthermore, the Colorado Department of Revenue reports record sales of $423 Million in tax revenue collected from marijuana sales in 2021. In comparison, $387 Million in taxes were reported for 2020, a jump of nearly $36 Million over the course of one year.
For the second year in a row, Colorado has sold over $2 Billion in marijuana from January-November of 2021. A full annual report from the DOR should be available in February.
Colorado Marijuana Tax Breakdown
- 2.9 percent state sales tax on marijuana sold in retail stores
- 15 percent state retail marijuana sales tax
- 15 percent retail marijuana excise tax on wholesale and marijuana transfers
- The state also collects fee revenue from marijuana application fees and licenses
Recent Decline in Sales
In December of 2021, Colorado collected just over $30 Million in tax revenue from marijuana sales. This continues a five-month decline of state-collected taxes. The state recorded approximately $158 Million in overall sales from recreational and medical marijuana in November, which is about a 10 percent drop from October.
Why are marijuana sales dropping?
While marijuana sales were record-breaking in 2021, they began to decline towards the end of the year. Why is that? The sales numbers are still impressive; however, they are declining due to the surge in June and July. The summer months brought on a boom in business, so marijuana sales are just moving closer to standard revenue numbers.
Are prices increasing?
Despite the recent drop in marijuana sales revenue, retail prices are dropping. According to the Colorado Marijuana Enforcement Division’s latest average market rate (AMR), wholesale market sales fell in multiple categories of marijuana products from October to December. Most noticeably, in the cannabis flower category.
As stated by the AMR, the price per pound of marijuana fell 28 percent in late 2021, from $1,316 to $948. The lower prices include marijuana trim and plant material used from extraction. The Marijuana Enforcement Division also reports that dispensary sales have declined monthly in the autumn months of 2021.
Wrapping it Up
Slower months and seasonal sales are expected within Colorado’s vast marijuana industry. However, recent declines indicate a more considerable drop than usual. Be sure to check back regularly with Leafy Mate for the latest information regarding marijuana sales and tax revenue statewide and nationwide.