Pubdate: Tue, 11 Mar 2014
Source: San Jose Mercury News (CA)
Copyright: 2014 Associated Press
Contact:  http://www.mercurynews.com/
Details: http://www.mapinc.org/media/390
Author: Kristen Wyatt, Associated Press

COLORADO REAPS POT TAX BENEFIT

First Month of Recreational Sales Yields $2 Million

DENVER (AP) - Colorado made roughly $ 2 million in marijuana taxes in 
January, state revenue officials reported Monday in the world's first 
accounting of the recreational pot business.

The tax total reported by the state Department of Revenue indicates $ 
14.02 million worth of recreational pot was sold. The state collected 
roughly $ 2.01 million in taxes.

Colorado legalized pot in 2012, but the commercial sale of marijuana 
didn't begin until January. Washington state sales begin in coming months.

The pot taxes come from 12.9 percent sales taxes and 15 percent 
excise taxes. Voters approved the pot taxes last year.

They declared that the first $ 40 million of the excise tax must go 
to school construction; the rest will be spent by state lawmakers.

Colorado has about 160 state-licensed recreational marijuana stores, 
though local licensing kept some from opening in January.

Local governments also have the ability to levy additional pot sales 
taxes if they wish.

Monday's tax release intensified lobbying over how Colorado should 
spend its pot money. Budget-writers expect the nascent marijuana 
industry to be extremely volatile for several years, making lawmakers 
nervous about how to spend the windfall.

Budget-writing lawmakers joke that plenty of interests have their 
hands out to get a piece of the pot windfall.

Gov. John Hickenlooper has already sent the Legislature a detailed $ 
134 million proposal for spending recreational and medical marijuana 
money, including new spending on anti-drug messaging to kids and more 
advertising discouraging driving while high.

State police chiefs have asked for more money, too.

"The whole world wants to belly up to this trough," said Sen. Pat 
Steadman, a Denver Democrat who serves on Colorado's budget-writing 
Joint Budget Committee.
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MAP posted-by: Jay Bergstrom