Colorado is disappointed in their actual tax receipts for recreational marijuana. The projected a tax income of $33.5 million for combined marijuana taxes but actually only took in a little more than $12 million. They are blaming it on the lower tax on medical marijuana.
“I think our original assumption about the cannibalization was wrong,” Colorado Legislative Council economist Larson Silbaugh said at Tuesday’s committee meeting.
The result, suggested David Blake of the Colorado attorney general’s office, is that the resilience of the medical-marijuana market “is being driven by avoidance of that tax.”
Ya reckon? A look at tax receipts in border towns where one state has a substantially higher tax than its bordering state should have told them this.