Pubdate: Tue, 08 Apr 2014
Source: Denver Post (CO)
Copyright: 2014 The Associated Press
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: Kristen Wyatt, The Associated Press

GOVERNOR CUTS POT REVENUE FORECAST BY $20 MILLION

(AP) - Citing uncertainty in the marijuana market, Gov. John 
Hickenlooper has ratcheted back his projection on how much tax the 
newly legal drug could produce.

Hickenlooper planned to present his scaled-back request for funding 
services from that lowered projection to lawmakers on Tuesday.

He said in February that medical and recreational pot taxes and fees 
would produce some $134 million for the fiscal year beginning in 
July. But Hickenlooper has pared back those expectations by more than 
$20 million, citing uncertainty in the market.

The governor's budget director, Henry Sobanet, said Monday the 
scaled-back numbers came after analysts set wildly different 
projections after seeing tax results of Colorado's first full month 
of retail recreational marijuana.

Colorado made about $3.5 million from medical and recreation pot 
taxes and fees in January. Analysts expect that number to rise 
dramatically as new stores open and a one-time tax waiver on 
marijuana plants expires. However, legislative forecasters predicted 
last month that recreational pot would produce about $65 million in 
taxes next year, about half of the governor's forecast of $125 million.

Sobanet said the governor revised his proposed expenditures "more 
prudently based on the lower of the two numbers."

Colorado voters approved the pot taxes last year- 10 percent sales 
taxes and 15 percent excise taxes, in addition to regular sales 
taxes. The first $40 million from excise taxes has already been 
designated for school construction; any remaining money will be 
appropriated by lawmakers.

The governor asked lawmakers not to trim some of his original 
proposals-including $45.5 million for youth use prevention and $12.4 
million for public health.
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MAP posted-by: Jay Bergstrom