COLORADO, USA — Colorado saw an almost $100 million decline in marijuana tax revenue last year, and an industry trade group said on Friday that the drop is resulting in struggles for small-business owners.
The Marijuana Industry Group (MIG) cited sales numbers released Wednesday by the Colorado Department of Revenue showing a sharp decline in recreational and medical marijuana sales since 2021.
In 2021, Colorado collected $423 million in cannabis tax revenue, and last year, the state collected $325 million in tax revenue. MIG said that the decline in sales hurts public programs that marijuana businesses help fund, including housing, mental health and education.
Sales data from November shows that Colorado recorded $130 million in marijuana sales that month, which was a 22% decline from November 2021. Medical marijuana sales dropped 39% in November 2022 compared with November 2021, MIG said in a news release.
“For the past year, we have seen small business owners closing their doors and laying off employees as sales plummet,” said Tiffany Goldman, board chairwoman of the Marijuana Industry Group.
In the release, the association also said some medical patients are turning to unregulated markets to get the care they need.
“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 said.
H/T: www.9news.com
