Colorado legalises marijuna, gets $100m in taxes this year
Discussion
Not one I particularly agree or disagree with but the facts do suggest legalisation works.
http://www.businessinsider.com/r-colorado-legalize...
Can see Doritos sales going through the roof as well..
http://www.businessinsider.com/r-colorado-legalize...
Business Insider said:
(Reuters) - Colorado, the first state to tax legalized recreational marijuana sales, expects to bring in an estimated $98 million in revenue this year, exceeding the state's original expectations by 40 percent.
The state began levying sales and excise taxes on recreational marijuana on January 1, 2014. Moody's Investors Service, in a report released Friday, said legal sales in Colorado will reduce the size of the black market and revenue from legal sales will mean more tax payments flowing into state coffers.
The funds are slated for treatment, school construction and deterring young people from using the drug. School districts will likely get $40 million, or nearly 30 percent, of the projected $134 million in total marijuana tax revenues. New revenues will only make up 1.4 percent of the state's available general fund.
"There's been a lot of buzz around legalization," said Andrea Unsworth, a Moody's analyst. But she cautioned that tax revenues were "still a very small fraction of the state's overall budget. It's not going to sway things too much in one way or another."
Colorado imposed a 15 percent excise tax on wholesale marijuana and a 10 percent sales tax on retail sales. That's in addition to a pre-existing 2.9 percent tax on medical marijuana. Local governments will keep 15 percent of sales tax revenue, while the rest of the money will stay with the state.
Tax collections started off slowly this year, only totaling $7.5 million or $45 million if amortized to the full year. But Moody's said the new revenues are likely significantly understated in the long term because only a limited number of retail facilities had opened, growers had not yet met buyers' demand, and many local jurisdictions had yet to issue licenses.
Moody's projected that the decriminalization of marijuana would likely reduce policing costs, although other enforcement expenditures might also arise. The net effect is uncertain.
In March, the Colorado Association of Chiefs of Police asked the governor for 10 percent to 15 percent of marijuana's total tax revenues, citing the need to police unlicensed sales of the drug, diversion to other states, and drivers under the influence of marijuana, among other costs, the report noted.
The only other state to legalize recreational marijuana, Washington, will begin marijuana sales in June.
That's an awful lot of cash that can be put to good use. Crime's down 10% as well apparently - win-win it would seem. Should we be legalising and taxing it here too?The state began levying sales and excise taxes on recreational marijuana on January 1, 2014. Moody's Investors Service, in a report released Friday, said legal sales in Colorado will reduce the size of the black market and revenue from legal sales will mean more tax payments flowing into state coffers.
The funds are slated for treatment, school construction and deterring young people from using the drug. School districts will likely get $40 million, or nearly 30 percent, of the projected $134 million in total marijuana tax revenues. New revenues will only make up 1.4 percent of the state's available general fund.
"There's been a lot of buzz around legalization," said Andrea Unsworth, a Moody's analyst. But she cautioned that tax revenues were "still a very small fraction of the state's overall budget. It's not going to sway things too much in one way or another."
Colorado imposed a 15 percent excise tax on wholesale marijuana and a 10 percent sales tax on retail sales. That's in addition to a pre-existing 2.9 percent tax on medical marijuana. Local governments will keep 15 percent of sales tax revenue, while the rest of the money will stay with the state.
Tax collections started off slowly this year, only totaling $7.5 million or $45 million if amortized to the full year. But Moody's said the new revenues are likely significantly understated in the long term because only a limited number of retail facilities had opened, growers had not yet met buyers' demand, and many local jurisdictions had yet to issue licenses.
Moody's projected that the decriminalization of marijuana would likely reduce policing costs, although other enforcement expenditures might also arise. The net effect is uncertain.
In March, the Colorado Association of Chiefs of Police asked the governor for 10 percent to 15 percent of marijuana's total tax revenues, citing the need to police unlicensed sales of the drug, diversion to other states, and drivers under the influence of marijuana, among other costs, the report noted.
The only other state to legalize recreational marijuana, Washington, will begin marijuana sales in June.
Can see Doritos sales going through the roof as well..
GTIR said:
I understand that it's still illegal for banks to loan money to these companies?
Most of these businesses are multi million dollar cash businesses as banks don't want to take their cash, but will happily take the cash from arms dealers and those laundering "real" drug money.
I don't know if it was a propaganda piece by the BBC but they followed some 60 year old woman on a dope tour, said she was visiting town with her hubby who was on a business trip. Some limo picked her up and drove around the joints where she could legally do dope. At the end she went to some place that did something akin to shots or slammers. She returned to the car giggling her head off and the piece ended with the narrator saying 'After the giggles stopped she got quiet and withdrawn and ended the interview'.
Some Gump said:
Come again?
He's saying that the banks won't accept drug money from these marijuana retailers but they'll happily accept money from weapons Defence companies (arms dealers) and drug cartels (as HSBC recently got fined for)http://www.huffingtonpost.com/avinash-tharoor/bank...
Edited by Oakey on Friday 22 August 23:43
pcvdriver said:
Most of these businesses are multi million dollar cash businesses as banks don't want to take their cash, but will happily take the cash from arms dealers and those laundering "real" drug money.
An Independent Scotland with Salmond at the helm will legalise everything to get the tax revenues in for a fairer countryeharding said:
GTIR said:
I understand that it's still illegal for banks to loan money to these companies?
The actual 'problem' that these companies face isn't borrowing money, it's finding a bank that can accept the shedloads of cash they're generating.Saw a feature on Bloomberg recently showing the special machines used to clean the paper monies of their oily aroma before being transported via security trucks (with ganja leaves emblazoned on the side) to be deposited at the bank.
What's this about banks not taking it? Does it vary state to state?
The guy in the cleaning and transportation business seemed to be enjoying a very lucrative trade!
What's this about banks not taking it? Does it vary state to state?
The guy in the cleaning and transportation business seemed to be enjoying a very lucrative trade!
jogon said:
I suggest we grant ganja licences to the depraved sea side towns such as Blackpool, Scarborough, Bognor, Morecambe etc. Allow them to open cannabis cafes and watch the tourism and local businesses flourish.
These places really couldn't get any worse so it's certainly worth a shot.
Even better make it legal if you are 'offshore' to stop piers being sold and then suffering mysterious fires that destroy them soon after. These places really couldn't get any worse so it's certainly worth a shot.
I can't see a downside to this personally - many seaside towns are in a great need of some kind of tourism boost in the face of cheap European flights and some areas are so deprived already that cannabis consumption is already rife in them. Why not draw a positive from this?
On a down note, pot-related emergency room visits in Colorado are on the rise. Additionally, pot today is far more potent, in May cases, as opposed to 20 years ago. New studies are also indicating that it is far more damaging to the brain than previously believed.
http://tellmed.org/patient-information/local-healt...
http://tellmed.org/patient-information/local-healt...
jogon said:
....the depraved sea side towns such as Blackpool, Scarborough, Bognor, Morecambe etc. ...
Depraved? Why wasn't I told? Gladys, cancel the Vegas booking, we're going to gamble, have kinky sex with teenage hookers and do hard drugs, in Hastings.Edited by anonymous-user on Sunday 24th August 09:35
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