Pubdate: Sun, 28 Dec 2014
Source: Denver Post (CO)
Copyright: 2014 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: Jason Blevins

TOURISTS ACCOUNT FOR 90 PERCENT OF MARIJUANA SALES IN MOUNTAIN TOWNS

Mountain towns dependent on tourists are reaping the rewards of legal 
marijuana. As the towns swell with visitors-skiers in February and 
March, summer vacationers in July and August-so do their sales-tax coffers.

"Most of our sales seem to be to our visitors," said John Warner, a 
dentist and the mayor of Breckenridge, which is tracking toward $8.8 
million in marijuana sales in 2014. "Some people might think of it as 
a sin tax, and a lot of people don't like sin taxes. But it's 
certainly helpful to our community."

Like a lodging tax that doesn't burden locals, taxes on marijuana in 
the high country largely are paid by tourists. A midsummer report by 
the state Department of Revenue estimated that visitors in highly 
trafficked mountain communities accounted for 90 percent of marijuana sales.

With little history for revenue projections, most town leaders 
estimated marijuana tax income conservatively. They relished their 
early Christmas presents, with revenues climbing well beyond early predictions.

Breckenridge's revenue is about 30 percent higher than Warner and his 
team expected. The town council recently decided to direct extra 
marijuana income toward preschool and child care programs, with the 
rest of the excise tax going toward law enforcement and local mental 
health programs.

The town is projecting about $8.3 million in 2015 marijuana sales, 
but that figure may have to be revised downward, Warner said. Voters 
this month in Breckenridge decided to ban recreational marijuana 
shops on Main Street, which will push out the town's marijuana 
workhorse, Cannabis Club.

"They are the prime generator of these big revenues, and they may not 
see as large sales figures next year in a new location," Warner said.

Aspen's five medical and recreational marijuana dispensaries also are 
fueling a surge in the city's tax revenues. The city merges marijuana 
tax with liquor taxes, but the combined revenue is up 24 percent 
through October compared with the same span last year.

Liquor and marijuana sales through October in Aspen are $10.8 
million, compared with $7.2 million in 2013, $6.9 million in 2012 and 
$6.6 million in 2011.

In Telluride, which joined Breckenridge as the only high country 
hamlet with open stores Jan. 1, tax revenues from three dispensaries 
are helping pay down the town's $20 million debt on a development 
blocking conservation easement on the beloved valley floor.

While Telluride will post a record sales tax harvest in 2014, 
marijuana taxes account for only 4.5 percent of all sales tax 
revenues. Steep declines in marijuana sales from March to the 
slow-season April and September to festival-free October in Telluride 
jibe with the statewide trend that most high-country sales are to visitors.

"Really, we are experiencing the benefits of having a balanced 
economy," Telluride Mayor Stu Fraser said. "Where we have been able 
to expand into the shoulder seasons and have grown the winter and 
summer as well. If I had to point to reason for our growth, it 
wouldn't be marijuana."
- ---
MAP posted-by: Jay Bergstrom