The market is beginning to balance itself out…
(The Center Square) – Marijuana sales in Colorado continued a downward trend in February totaling $145 million, according to the state’s latest market data.
February marked the third consecutive month of declining marijuana sales following a record-breaking year in 2021, the Colorado Department of Revenue’s (CDOR) figures show. Overall, marijuana sales in February were 3% below January’s numbers and 13% below total sales from a year ago.
So far this calendar year, $296 million of marijuana has been sold in the state, bringing total sales to more than $12.5 billion since legalization in 2014.
According to CDOR’s data, retail marijuana sales totaled more than $124 million in February while medical marijuana brought in another $20 million.
Denver County accounted for nearly $32 million of the retail sales total, making it the highest grossing county for retail sales in the state. Arapahoe and Adams counties rounded out the top three counties for marijuana sales, bringing in $13 million and $10 million, respectively.
Colorado also collected more than $27.8 million in taxes from its marijuana sales in March, CDOR data shows. Sales tax figures are often posted a month ahead of sales data because taxes are accounted for in Colorado’s accounting system whereas sales figures are reported by individual counties each month.
Tax revenue comes from a 2.9% state sales tax on marijuana sold in stores, a 15% state retail marijuana sales tax, and another 15% state retail marijuana excise tax on wholesale sales and transfers of retail marijuana.
Fee revenue is also generated by marijuana license and application fees. Last month, Colorado made more than $1.1 million from fees alone.
The state distributes tax revenue from marijuana sales to multiple stakeholders, some of which include local governments, public schools, and law enforcement agencies.
Last month, the state retained more than $17 million in taxes and redistributed more than $12 million to the Marijuana Tax Cash Fund, an account that supports health care, substance abuse treatment options, and health education programs.
Public schools received more than $2.1 million from marijuana taxes last month and local governments collected more than $1.9 million from state tax redistributions, according to CDOR.