A 15% excise tax on recreational cannabis sales was one of many provisions in Colorado’s Amendment 64, the legalization law that took effect statewide in 2014. And, according to the initiative, the first $40 million raised through that 15% tax would be slotted specifically for Colorado public schools.

Now — according to Ricardo Baca, editor of The Cannabist — it appears 2016 is shaping up to be the first year that Colorado schools can expect the full $40 million that was loudly touted by cannabis activists during the state’s 2012 legalization push.

In 2014, that specific tax totaled $13.3 million; in 2015, it increased to $35 million.

“We would be confident that at the current growth trend rates it’s going to exceed $40 million this year,” said Roy Bingham, founder of Boulder-based BDS Analytics. “We’re not big prognosticators of the future, but you can more or less draw a straight line of this year’s growth on the adult-use side and assume that that trend, even if it slows down a little, will grow and eventually exceed $40 million. That would be a growth of only 12 percent on the year, and it’ll be a lot more than that.”

Recent data from Colorado’s Department of Revenue indicates that Colorado retailers sold more than $88 million in cannabis products during January, 2016. Meanwhile, total Colorado cannabis sales during 2015 were just a hair under $1 billion.

So there you have it: cannabis legalization — and the subsequent effects of regulation — is working.

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Tags: | Categories: Cannabis Business News Cannabis Politics Recreational Cannabis News

Learn about cannabis businesses:

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  • S2S Insurance

    S2S Insurance Specialists, LLC (S2S) provides risk management services to the Recreational & Medical Industry, both domestic and abroad. Through a specialized platform, S2S helps both public and private companies purchase important Insurance Coverages in the emerging Cannabis Industry. Our mission is to educate, advise and help our clients obtain hard to place General Liability (including Product & Completed Operations, Employment Practice Liability & Workers Compensation) for their cannabis-related operations. We go above and beyond our client’s expectations while always supporting them in the claims process

  • Steep Hill

    Steep Hill is the world's leading cannabis science and technology company with significant footprints in lab testing, research and development, licensing, genetics, and remote testing. No other company brings these sectors into one synergistic whole. With the goal to provide "best practices" in cannabis testing, we provide expert consulting services to legislators and regulators in many countries around the world. Steep Hill: Leading the Science of Cannabis. Globally.

  • Accounting For Cannabis

    Accounting for Cannabis proudly assists clients with Marijuana-based businesses to stay compliant with complex cannabis-based accounting regulations. Accounting for Cannabis utilizes technology that not only helps our clients comply with local and federal rules and regulations but also gives them the freedom to do the work they love. We specialize in IRC 280e as well as Cash Management and Internal Control.

  • Weed Pay LLC

    Weed Pay is a cannabis banking and merchant services company. We think differently than conventional credit card processing companies due to our history of handling high-risk accounts. We are experts in the field of alternative payment options, merchant accounts, and banking. Our mission and vision are to provide needed customer support services to the cannabis industry within these areas.

  • 4blooms

    4blooms is San Diego’s first marijuana-specific marketing agency. The agency works with businesses involved in all aspects of the cannabis industry across the U.S., from growers to dispensaries to smoke shops. The team’s deep experience in web development, design and marketing makes 4blooms able to handle all aspects of business operations.

  • Headset

    Headset is the first real-time business intelligence and analytics service for the cannabis industry. We are a data-driven cannabis tech company and we’re passionate about helping the industry succeed. Our services cover an array of specialized needs that businesses in the industry have, be they growers, extractors, processors, or retailers.

  • LC Solutions Michigan PLLC

    LC Solutions offers clients timely accrual based bookkeeping, cost accounting strategies, planning, and consulting services. Our model supports an ongoing client relationship, helping to ensure accurate accounting records throughout the year. We are professional, patient, and creative in our approach. LC Solutions specializes 100% in serving Michigan’s Medical Cannabis industry.

  • Mac & Fulton Talent Partners

    Mac & Fulton Talent Partners is the premier recruiting agency for the indoor gardening and cannabis industries. For our client companies and candidates, M&F takes on the role of trusted partner and advisor in the development of long-term relationships. To this end, M&F's approach to recruiting and staffing in the cannabis space is founded on the understanding that our success is always determined by yours.

  • Distru

    Software built to streamline distribution and manufacturing. Distru provides inventory, order, and customer management for cannabis companies in a centralized platform.

  • Sapphire Risk Advisory Group

    Sapphire is an organization of professionals whose careers are centered on the science of preventing crime and increasing pro-business results through the implementation of controls and processes. Our vision is to create environments that are crime adverse due to strategic planning and foresight. Sapphire will be in your corner with advice and counsel as long as your organization is continuing to grow.

  • Releaf App

    Releaf App is a patent pending mobile app that enables patients to track their live sessions with cannabis and record exactly how it’s helping them. It then provides intelligent reporting to help patients learn what types of cannabis and intake methods are working best in treating their symptoms. Patients can share these reports with doctors and/or budtenders to discuss their treatment and identify their best options.

  • Cannabis Accounting Group, a CWSEAPA Company

    We believe that what sets us apart from other accounting firms, is working within the Tax Code to find a way around the oppressive Section 280E Rules.

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