A Colorado economist believes that Colorado Springs could net almost $100 million in annual tax revenue if the city legalized recreational marijuana sales. Reports Westword
According to Colorado College professor Neal Rappaport, a 12 percent local tax rate on recreational marijuana sales in the state’s second-largest city would collect just over $98 million per year, while an 8 percent rate would bring in more than $72 million.
To reach his projections, Rappaport studied state Marijuana Enforcement Division sales trends and demographic reports in Colorado towns allowing recreational sales, as well as current medical marijuana sales in Colorado Springs. The professor, who conducted the study for Together for Colorado Springs (a pro-recreational marijuana industry organization), calls his estimates “conservative,” and notes that rec sales taxes could “mitigate some issues” connected to the $20 million in upcoming city budget cuts in the wake of the COVID-19 pandemic.