Adult-Use Sales in Colorado Have Generated $3B in Tax Revenues Since Market’s Launch 

Colorado has generated $3 billion in tax revenues from adult-use cannabis sales since the market launched in 2014, according to state data outlined by Colorado Public Radio. Cannabis derived tax revenues in the state are used for school construction, behavioral health programs, reimbursement to cities and counties, and for industry regulation. 

Cannabis-derived tax revenues peaked in Colorado in early 2020 at about $40.7 million; however, the totals have been on a mostly downward trajectory since, with the most recent quarter topping out at about $20.3 million.   

Last year, combined medical and adult-use sales in Colorado were $1.4 billion – a 37% decrease compared to the peak year of 2021, when sales were $2.2 billion, the report says. So far this year, sales are trending lower – from January to May, sales have totaled $549,098,221 worth of cannabis, down 7% from the same period a year ago. 

Mason Tvert, a spokesperson for Colorado Leads, told CPR that there remains a market for THC products in the state, but that as the market has matured, the “products cost less now.” Tvert added that state-licensed cannabis businesses have also faced competition from hemp-derived THC products; however, in June, the state capped the THC content in those products at 1.75%.