Colorado Marijuana Revenue – The Missing $800,000 in January

Colorado’s January recreational marijuana tax collections came in at $2 million – but those numbers may be lighter than we can expect in the medium run (until prices start to drop) for a number of reasons, including limited supply, relatively few open stores, and more.

One factor that is easy to quantify is a temporary hole in Colorado’s wholesale tax on account of a technicality – a “one-time transfer” tax exemption that might add some $800,000 per month to the coffers in the long run.  Here’s how: Continue reading Colorado Marijuana Revenue – The Missing $800,000 in January

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Can Colorado Meet Its Marijuana Revenue Expectations?

Retail sales of recreational marijuana in Colorado for January came in at $14 million.  That seems light.  Colorado tax officials say those numbers are in line with expectations.  But official projections call for increasing sales over time, building from an average rate of $32 million per month from January to June 2014 ($194 million for the six months) to a rate of $51 million per month from July 2014 to June 2015 ($613 million for the fiscal year).  

Those six- or 12-month projections aren’t granular enough to reveal monthly growth -– sales won’t stay flat for six months and then suddenly jump to a new plateau for the next 12.  So I asked my friend Steve Schecter, a mathematician, how to smooth then out.  (I thought there was an excel program to do that).

His answer, with work shown below, is that recently estimated January revenue, based just on regranularizing (which is not a word, I know) the data, would figure out to some $28 million -– twice the actual amount reported, Continue reading Can Colorado Meet Its Marijuana Revenue Expectations?

Liquor Monopolies in Nordic Countries

State monopoly of sales of an intoxicant would maximize revenue and limit the profit motive.  That’s the model in 17 U.S. States for liquor, and in the Nordic countries for most alcohol.

This comes from http://en.wikipedia.org/wiki/Liquor_store (here), so it must be true:

All Nordic countries, except Denmark, have government-owned alcohol monopolies.
  • Denmark – Alcoholic beverages can be bought at any grocery store or kiosk.
  • Faroe Islands – Alcoholic beverages above 1.8% ABV can be bought in Rúsdrekkasøla Landsins, also known as Rúsan
  • Finland – Grocery stores may sell beer and other alcoholic beverages of less than 4.7% alcohol by volume (ABV), if the alcohol is produced by fermentation. All other alcohol must be purchased in the Alko store.
  • Iceland – Can only be bought at hard-liquor stores. Vínbúð stores.
  • Norway – Alcoholic beverages above 4.8% ABV can only be bought at Vinmonopolet stores.
  • Sweden – Grocery stores may sell beer and cider no higher than 3.5% ABV. All other alcohol must be purchased in the state-run Systembolaget stores, also known asBolaget or Systemet.

Most Canadian provinces, too, have liquor monopolies.

NC Poll: Tax Marijuana at Least Like Alcohol and Tobacco

Results of poll commissioned by the Center for New Revenue and conducted by Public Policy Polling: “If marijuana were to be made legal in North Carolina, do you think should it be taxed more than alcohol and tobacco, less than alcohol and tobacco, or about the same as alcohol and tobacco?”

Should be taxed more……………………………….  41%

Should be taxed less…………………………………  6%

Should be taxed about the same ………………..  49%

Not sure ………………………………………………….  4%

Full results with cross-tabs:  NC Marijuana Taxation — How Much? 

Results from an earlier poll show a strong preference for monopoly (58%) over private stores (19%):  https://newtax.files.wordpress.com/2013/03/nc-marijuana-polling-march-2013.pdf or click here.

Huffpo: Marijuana Taxes in Colorado — An Early Clue

Marijuana Taxes in Colorado — An Early Clue

http://www.huffingtonpost.com/pat-oglesby/marijuana-taxes_b_4914763.html or here

Across America, lawmakers are eyeing tax revenue from legalized marijuana. Colorado and Washington are each officially expecting over $100 million annually in marijuana excise taxes. In a few days, the Colorado Department of Revenue is due to report how much marijuana tax was paid there for January, the first full month of recreational sales anywhere ever.

But the report on January collections will tell us next to nothing about what other states can expect, and only a little about Colorado. You can multiply January taxes by 12, but that won’t show annual marijuana revenue the state can count on from now on — for two reasons. First, the mature market will not resemble the start-up January market. Second, Colorado will start taxing some transactions that it exempted in January.

Start-up Uncertainties Continue reading Huffpo: Marijuana Taxes in Colorado — An Early Clue

New Approach Oregon 2014 Initiative

Taxes, collected at the producer level, are $35 per ounce on flowers; $10 per ounce on leaves; and $5 per immature plant.  This marijuana initiative, the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act was hard to find, so I paste it (thanks to Anthony Johnson for sending the text, current as of March 4, 2014):

An Act

Be it Enacted by the People of the State of Oregon:

Continue reading New Approach Oregon 2014 Initiative