📉 Colorado’s cannabis tax revenues plummet

COLORADO
Colorado’s cannabis tax revenues plummet

What happened: Cannabis tax revenues in Colorado are on the decline, according to the state’s Economic and Revenue Forecast. 

Revenues declined about 13% in 2023-24 compared to the year prior. The state pulled in a total of $248 million.

Zoom in: The report says that declining demand after a pandemic-fueled surge, plus more neighboring states legalizing cannabis contributed to the decline. 

But the decline isn’t solely due to less sales — cannabis wholesale prices are falling across the board. And when prices fall, cultivators aren’t able to stay in business. There are about 17% less licensed cultivators in Colorado this year than the year prior, reports The Aspen Times.

What they’re saying: “Tax revenue from marijuana is falling across most states where recreational marijuana is legal due to declining demand after the pandemic, but states that legalized marijuana early — like Colorado, Washington, and Oregon — are seeing the biggest declines in sales,” the report says. 

Why it matters: About 1% of Colorado’s tax revenue comes from cannabis. That’s a big chunk of the state’s budget. And as more states legalize cannabis, getting the right tax policies in place are crucial.

One of the chief promises of legalization is tax revenue. It’s up to policymakers to ensure prices remain stable so businesses can plan, and that the right tax structure is in place to encourage consumers to buy legally. 

- JB

“I think the problem was, this is not something Mitch McConnell would support,” New York Senator Kirsten Gillibrand told The Dales Report, when asked why Senate Majority Leader Chuck Schumer hasn’t brought the SAFER Banking Act, a cannabis banking bill, to a full floor vote yet. 

“Because this is something that Sen. McConnell has some reticence about, it’s not been given the floor time,” Gillibrand said. “I’m hoping we can get a vote on it before the end of Congress.”

Influencer’s vape company charged with fraud🌿

The Securities and Exchange Commission charged influencer Dan Bilzerian’s company, Ignite International, with fraud. The SEC says the company falsely inflated revenue. Bilzerian’s father, Paul, was also indicted on Friday, over what the federal government alleges is his year-long avoidance of a $180 million judgment. Read more from the Los Angeles Times. 

SAFER gets a CBO score 💰

The Congressional Budget Office scored the newest version of the SAFER Banking Act, a cannabis banking bill. The CBO says the bill would increase bank deposits by $1.5 billion in 2026 — rising to $2.9 billion by 2034. Check it out.

Sen. Paul’s new hemp bill 👀

Kentucky Sen. Rand Paul filed a new bill that would increase the legal limit for THC in hemp from 0.3% — as outlined in the 2018 Farm Bill — to 1%. The bill, called the Hemp Economic Mobilization Plan or HEMP Act, is the latest hemp bill to be proposed in the Senate after Sen. Ron Wyden’s last week. 

Canadian cannabis company High Tide was named one of Canada’s fastest growing companies for the fourth year in a row. 

Pelorus Fund, a cannabis real estate firm, filed a complaint in California court last week seeking to place cannabis brand StateHouse in receivership, per Green Market Report.

Crystal J. Rodriguez-Dabney was appointed to serve on New York’s Cannabis Control Board, which oversees the state’s cannabis regulatory agency, the Office of Cannabis Management. 

In a sure sign of the times, tobacco giantReynolds American is hiring a Finance Lead for its cannabis division. Check out the job description here.

Denver's marijuana industry experiencing first-ever recession since legalization 11 years ago | KSBY

Editorial: Hazy enforcement of cannabis laws | Albany Times-Union

How a ‘well-known secret’ in Massachusetts cannabis testing is obscuring what’s in your weed | Boston Globe

Florida's Amendment 3 campaign warns of fentanyl-laced marijuana, but some call it a myth | Orlando Sentinel

Bay Area dispensary called 'the most important on Earth' faces financial collapse | SF Gate