Revenues From Legal Pot Sales Fall Short of Estimates in Colorado
High hopes for revenues in the range of $30 million by the end of June with the legalization of marijuana in Colorado this year have dwindled with less than half that amount realized.
Russia Today reported that Colorado has only $12 million in revenue after six months, since legalization went into effect Jan. 1.
The estimations were fueled by the success of sales in the first month -- with $1 million in sales on the first day and $5 million in the first week.
The Marijuana Policy Group previously said that only 60 percent of potential buyers would choose the legal route to obtain marijuana, RT reported.
It seems even less are doing so.
The cost is seen as the most likely reason, according to CNN Money.
Legal pot is taxed at 27 percent, which results in a higher cost than illegal pot.
Other issues include medical marijuana patients reselling, as well as residents over 21 selling illegally from the six plants they are allowed to grow for personal use -- both issues result in lower tax revenues for the state.
Because of the number of independent growers, and despite the limits set in place -- and illegal growing still being a felony -- selling prices in retail stores are higher, RT reported.
But the numbers aren't troubling politicians, yet.
"it's too early to be worried," state Rep. Dan Pabon told CNN Money.
In addition, it was the lawmakers who made the high estimates, because they would have to refund money to taxpayers if they made more than expected.
"Right now we are pretty significantly under what should be produced," Ron Kammerzell, the deputy senior director of enforcement for the state Department of Revenue, told the Post Independent, RT reported. "What that does is raises the prices and if the price is too high, then we can't compete with the black market, and that was our ultimate goal with Amendment 64 - we wanted to eliminate the black market."
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