What’s Behind Colorado’s Drop in Cannabis Revenue?
Spencer Schredder
November 12th, 2015
Policy, Top News
Colorado’s recreational and medical marijuana revenue reached $94.6 million in September, which represents a drop of around $6 million from August’s $100 million in combined sales.
The drop could have been due to a seasonal dip in sales, as the summer months come to an end, students return to school, and people get on with their lives. Without much in the way of historic data, it’s difficult to determine how sales will fluctuate throughout the seasons. Sales data from November and December should help paint a clearer picture of the impact of seasons on sales, although these figures could be skewed by the state’s ski tourist season.
A second reason for the drop could be the September 16th marijuana sales tax holiday, which eliminated some sales and excise taxes that are normally added to cannabis purchases. According to the state’s own estimates, the one-day tax holiday was expected to cost the state about $3.6 million, as businesses adjusted shipments and consumers timed purchases to take advantage of the discount and avoid paying taxes.
In reality, the true cause of the drop was likely a combination of these two events that occurred during the month, but industry watchers will be eyeing the next few months to be sure.
The good news is that cannabis sales remain very robust on an annualized basis. In 2014, the state’s marijuana sales amounted to approximately $700 million. This figure has already been surpassed this year, with sales reaching more than $730 million as of last month. These sales have generated about $98.3 million in revenue for the State of Colorado – a portion of which has been earmarked for schools, prevention education, and other programs.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Spencer Schredder
Mr. Shredder has over a decade of experience in the financial markets as both a private investor and financial journalist.
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