This week, the Colorado Department of Revenue released new data that showed that the dispensaries within the state set a new sales record in 2019.
The state of Colorado raked in $1.74 billion in medical and adult-use marijuana sales, out of which $302 million was collected in the form of sales taxes. The tax proceeds within the state are used in the construction of new schools and health education programs.
Compared to 2018, marijuana sales in the state of Colorado increased by 13% in 2019. Colorado was among the first states to legalized marijuana in the U.S, and since 2014, Colorado has generated a total of $7 billion in legal marijuana sales. And since 2014, the state’s legal marijuana industry has made a total of $1.21 billion in tax proceeds.
In December 2019, the state of Colorado sold more than $144 million of marijuana products, which is a 6.7% increase from the previous month. But, August was the most lucrative within the state in all of 2019, because the state’s legal marijuana businesses sold weed worth $173 million.
Colorado Governor Jared Polis is an avid supporter of legal marijuana because it has brought a lot of economic benefits to his state. And while speaking at a CNBC event, Polis said that the industry is performing well within the state as it has created many employment opportunities, raised revenue for Colorado, and buildings are being rented out, giving the landlords business. He has also witnessed a reduction in the crime rate.
Analysts predict that the booming marijuana industry is just getting ready for a takeoff, and this prediction coincides with strong marijuana sales.
In the whole of the U.S., the employment opportunities in the legal cannabis industry hiked up to a quarter of a million people in 2019, and analysts predict that the legal marijuana industry might overtake the illicit market soon.
Marijuana is still a federally controlled substance, and there are strict restrictions for companies when it comes to advertising marijuana. The national marketing of marijuana is prohibited, but state regulators are given the mandate to establish the rules for promoting cannabis products locally.
The restrictions have forced companies to be creative in coming up with ways to reach their target customers.
For instance, 51 dispensaries and manufacturers have adopted a clean road initiative where they are sponsoring approximately 66% of Colorado state highways.
In exchange for a sign, businesses and individuals through Colorado’s Department of Transportation Clean Colorado, Sponsor-a-Highway program, offer to pay a clean-up fee to keep the roads litter-free.
Such initiatives to give back to the community are seen by analysts as proof that what sector players like Champignon Brands Inc. and ChineseInvestors.com (OTCQB: CIIX) have always pointed out as the positive knock-on effects of legalizing this industry.
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