Voting is over, and the results are in. Read on to find out how cannabis initiatives fared in this year’s Colorado elections.

Colorado

Colorado voters rejected a statewide ballot measure that would have increased the sales tax on recreational marijuana. Proposition 119 would have increased recreational marijuana sales tax by 5 percent to fund private after-school and tutoring programs. The initiative failed by 54.41 percent to 45.59 percent.

Peter Marcus, a spokesman for Boulder-based cannabis company Terrapin, said Proposition 119 was a “misguided policy.”

“Despite being significantly outspent by proponents, Colorado voters still soundly rejected using cannabis as a piggy bank for out-of-state special interest projects. Coloradans understand that lawmakers struck an appropriate balance when they planned for cannabis taxes. Disrupting that system would only set successful regulation back. We can’t balance the state budget and education on the backs of cannabis consumers; we need long-term solutions that address structural deficiencies,” Marcus said after Proposition 119’s defeat.

Denver

In Denver, another marijuana sales tax increase was on the ballot. Initiative 300 would have increased the recreational cannabis sales tax by 1.5 percent to fund pandemic research at the University of Colorado Denver City Center.

“Denver voters recognized that this measure — funded by an out-of-town billionaire — taxes people’s pain relief to pay for a random, pandemic preparation program that has no accountability, no oversight, no specific solutions, no connection to the marijuana industry and no relationship to core city services. We are hopeful that the city’s business community will oppose any future efforts to increase taxes on the Denver cannabis industry just as they would for any other industry in the city,” Chuck Smith of the cannabis business organization Colorado Leads told Westword.

An out-of-state special interest group funded the initiative, and CU Denver was not involved in getting the measure on the ballot. The vote was no/against the initiative by 60.35 percent to 39.65 percent.

Golden, Westminster, and Brighton

By a slim 58.68 percent to 49.60 percent margin, voters in Golden decided to lift the moratorium on recreational marijuana dispensaries in the city. Cannabis cultivation, extraction, and manufacturing are still a no-no in city limits. Still, marijuana sales will finally be a reality in Golden after the city council drafts and implements rules.

However, it doesn’t look like adult-use marijuana dispensaries will be coming to Westminster anytime soon. Despite voting “yes” on allowing retail marijuana in the city by 53 percent, voters said “no” to a separate tax measure tied to the initiative.

Brighton was a definite “no” on repealing the ban on recreational marijuana sales. Voters rejected the measure by 53 percent.

Lakewood

Lakewood’s sales tax on recreational marijuana will remain at 19.6 percent after voters rejected a measure to increase the tax rate by an additional 5 percent. If the initiative had passed, the City of Lakewood would have been able to increase the tax on adult-use marijuana by up to 10 percent without further voter approval.

Mead, Lamar, and Wellington

It turns out that 3 wasn’t a magic number in Mead, where voters rejected a ban on medical and recreational marijuana sales for the third time since 2013. 61 percent of voters rejected the measure.

There was better cannabis election news in Lamar, where voters approved two marijuana-related measures. 54 percent of voters approved Ballot Measure 2B, legalizing recreational marijuana sales. 55 percent of voters approved Ballot Measure 2A for a 5 percent local tax on adult-use cannabis sales.

In Wellington, the vote on Initiative 2B is still too close to call. As in, a 3-vote difference too close to call. The initiative would allow medical and recreational sales in Wellington. With a total of 3,341 votes counted so far, 1,672 voters said “yes,” while 1,669 voters said “no” to the measure.

However, it’s not so close when it comes to Initiative 300, the vote on whether to implement a 3.5 percent sales tax on adult-use marijuana purchases. The initiative looks like it will pass, with 231 “yes” votes in the lead.

Marijuana may be legal in Colorado, but there’s a slew of marijuana-related initiatives on the ballot this year.

Colorado

Statewide, Colorado voters will decide whether to increase the sales tax on recreational marijuana to fund after-school and tutoring programs for low-income and underserved youth.

Proposition 119, also known as the State Learning and Academic Progress Initiative (Leap), would give families earning between $25,000 and $50,000 a yearly stipend of $1,500 for after-school programs. Supporters of the initiative say the money would help close income-related learning gaps, which have been particularly exacerbated during the coronavirus pandemic.

If the initiative is approved, it will raise marijuana taxes from 15 percent to 20 percent. Local governments add their own marijuana sales and industry taxes, so the tax on recreational marijuana would go from 26.4 percent to 31.4 percent in Denver.

The state’s largest teachers union, the Colorado Education Association, initially supported the initiative. However, they withdrew their support and adopted a neutral stance over oversight issues and a lack of information about how the program would be implemented. In particular, they noted that the program may not be as accessible for rural students and that it funnels money toward private, for-profit programs while doing nothing to fund public schools.

State marijuana proponents oppose the ballot measure, arguing that increasing an already hefty tax on recreational marijuana could push people to the black market, as well as detract from social equity initiatives.

Denver

In Denver, voters will decide whether to increase the recreational marijuana sales tax by 1.5 percent to fund pandemic research. Initiative 300 would raise around $7 million annually to fund the University of Colorado Denver CityCenter for research.

Denver Mayor Michael Hancock opposes the initiative. On Facebook, he wrote, “While we continue to grapple with the impacts of COVID-19, adding a cost burden to just Denver voters seems unfair. Let’s rely on our national research institutions to do this work and share the responsibility more broadly than just Denver taxpayers.”

The initiative was sponsored by a Delaware-registered advocacy group, Guarding Against Pandemics. The University of Colorado was not involved in the initiative, and they don’t have any plan on how to use the funds.

Golden, Westminster, and Brighton

Three Colorado suburbs may finally have the chance to open recreational marijuana dispensaries thanks to initiatives on the ballot in Golden, Westminster, and Brighton.

After recreational cannabis was legalized in the state, the city council in Golden placed a moratorium on adult-use marijuana businesses in the city. If voters approve the measure, recreational dispensaries could open their doors. Marijuana cultivation, extraction, or manufacturing facilities would still be off the table.

Similarly, Westminster banned marijuana sales in 2013. However, ballot measures presented by the city council would all adult-use marijuana dispensaries and create a new local sales tax.

Brighton City Council banned marijuana sales after it was legalized in 2012, but this year voters in the city will vote on whether to allow recreational marijuana dispensaries as well as create a 4 percent local sales tax.

Lakewood

This year it’s all about taxes as Lakewood voters weigh in on a special marijuana sales tax that would help fund the city. If approved, local taxes on recreational marijuana would be set at 5 percent, with the City of Lakewood retaining the right to increase the tax up to 10 percent without further voter approval. Currently, Lakewood’s overall sales tax for recreational marijuana is 19.6 percent. The sales tax increase would raise around $2.9 million per year for Lakewood.

Mead, Lamar, and Wellington

Three rural Colorado towns will also vote this November on whether to allow recreational cannabis sales.

In Wellington, Initiative 2B would allow medical and recreational marijuana sales, and Issue 300 would implement a 3.5 sales tax on recreational marijuana purchases.

A voter-backed initiative in Mead could end the prohibition of marijuana sales in the town. A similar measure failed in 2019.

Lamar has two separate ballot initiatives that would end the ban on medical and recreational marijuana sales. Ballot Question 2B would allow marijuana dispensaries, cultivation, extraction, and manufacturing, while Ballot Issue 2A would create a 5 percent local tax on recreational marijuana sales. The city would have the right to raise adult-use marijuana taxes up to 15 percent without further voter approval.

Governor Jared Polis (D-CO) sent a letter to the sponsors of a cannabis legalization bill, asking them to consider passing marijuana banking and tax reform first.

Senate Majority Leader Chuck Schumer (D-NY), Senator Cory Booker (D-NJ), and Senator John Wyden (D-OR) are co-sponsors of the Cannabis Administration and Opportunity Act (CAOA). The bill aims to deschedule marijuana and promote social equity.

In his letter, Polis urged the senators to pass the Secure and Fair Enforcement (SAFE) Banking Act before the CAOA.

“I am thrilled that you are bringing forward a long-term, comprehensive solution that deschedules cannabis while enhancing social equity pathways. I hope that you will first focus your efforts on the two biggest barriers to the success of the cannabis industry: banking and IRS Code Section 280E (280E). Legislation to address these issues has more bipartisan support than ever before and can be passed in the short-term as you continue to work on the details of the CAOA.”

Access to banking has been a challenge for the cannabis industry from the beginning. The SAFE Banking Act would protect banks working with the cannabis industry from being penalized or violating federal anti-money laundering and illicit finance laws.

“The cannabis industry is simply too large to be prohibited from banking opportunities, and the Senate must remedy this harm by bringing this measure up for a vote in the Senate Committee on Banking, Housing, and Urban Affairs immediately.”

“Congress has the power and traction to address these inequities in the near-term while continuing to refine the CAOA, and I encourage you to efficiently take any opportunity to pass legislation concerning banking or 280E,” the governor wrote.

Polis cautioned the lawmakers against too high of a tax rate in the CAOA.

“It is critical that the tax level is not so cost prohibitive that it undermines the federal legal cannabis systems both already in place and being developed in emerging regulated cannabis states,” he wrote.

“I encourage the bill sponsors to carefully consider the federal excise tax rate so as not to set it so high that it would supplant much needed and relied upon state and local taxes. We should regulate cannabis similarly to alcohol; so it is appropriate for the bill sponsors to continue to look to the alcohol taxation framework for guidance on setting the appropriate tax rate for cannabis.”

The letter was sent in response to a public comment request from the senators who drafted the CAOA.

Recreational marijuana officially lit in Michigan

On Dec. 1, Michigan became the first state in the Midwest to allow recreational marijuana sales.

On the first day of sales, the state’s three licensed retail marijuana shops generated more than $200,000 in cannabis sales and an estimated $36,000 in tax revenue.

“The consumer demand was off the charts,” said Rick Thompson, who serves on the Michigan NORML board. “Each of the provisioning centers had lines out the door and around the block. Most had police officers on hand to ensure people were safe from traffic.”

Michigan voters approved Proposal 1 to legalize adult-use marijuana in 2018. Sales were originally slated to begin Jan. 1, 2020, but the state moved up the date in an effort to reduce black market sales.

1,400 of Michigan’s 1,800 cities and townships do not allow marijuana sales. Detroit has delayed recreational sales until Jan. 31.

Adults 21 and older can purchase up to 2.5 ounces of flower, including up to 15 grams of concentrate.

Marijuana Industry Daily projected that marijuana sales in Michigan are expected to reach $1.4 billion to $1.7 billion per year when the market reaches maturity.

 

Illinois to ring in the new year with legal adult-use cannabis

Jan. 1, 2020, will mark the beginning of more than just a new decade in Illinois as the state’s first recreational marijuana dispensaries are set to open on New Year’s Day.

Illinois was the first state to legalize recreational marijuana through the state legislature rather than through a voter-approved ballot initiative.

“As the first state in the nation to fully legalize adult-use cannabis through the legislative process, Illinois exemplifies the best of democracy—a bipartisan and deep commitment to better the lives of all of our people,” Pritzker said. “Legalization of adult-use cannabis brings an important and overdue change to our state, and it’s the right thing to do.”

In June, Gov. J.B. Pritzker (D) signed a bill that allows adults 21 and older to possess and purchase cannabis. In addition to legalizing adult-use cannabis, the new law includes provisions to expunging prior marijuana convictions and the creation of social equity programs.

Recreational marijuana will have a graduated tax rate according to the THC content:

“The most historic aspect of this is not just that it legalizes cannabis for adults but rather the extraordinary efforts it takes to reduce the harm caused by the failed war on marijuana and the communities it hurt the most,” said state Sen. Toi Hutchinson (D).

Illinois is the eleventh state to legalize recreational cannabis.

 

Massachusetts sells $400 million in marijuana during first year of recreational sales

During its first year of legal recreational marijuana, Massachusetts raked in nearly $400 million in sales despite having only 36 licensed retail shops.

For comparison, during the first year of its recreational marijuana market, sales in Colorado amounted to $300 million with 306 licensed retailers.

Data released from the Massachusetts Cannabis Control Commission (CCC) shows that daily sales regularly exceed $1 million, and often exceed $2 million. At its current pace, adult-use sales could exceed $1 billion by 2021.

The lack of marijuana dispensaries in the state is something CCC Chairman Steven Hoffman says the Commission is planning to address.

“I have no expectation there will be a retail store on every corner, but we have a lot more geographic expansion to do,” Hoffman said. “That’s the biggest part of our job.”

The CCC has approved an additional 53 provisional licenses for cannabis retailers, with another 166 applications pending.

Colorado has been in the midst of a housing crisis for the last several years, with rent in Denver increasing more than 48 percent from 2010 through the end of 2017. But if a proposal to use sales tax proceeds from recreational marijuana sales is passed by city council, it could help bolster funds used for affordable housing in the city.

The proposal unveiled by Mayor Michael Hancock and other city officials would increase the number of income-restricted apartments from 3,000 to 6,400 over the next five years, as well as doubling money to the Affordable Housing Fund from $15 million per year to $30 million per year. Partnering with the Denver Housing Authority, the city would issue $105 million in bonds to subsidize affordable housing.

Hancock’s proposal would increase Denver’s 3.5 special tax on recreational cannabis to 5.5 percent, bringing the total state and local taxes to 25.25 percent. Denver voters wouldn’t have a say in the increase since the 2-percentage point increase requires only city council approval.

Marijuana industry members have largely supported the proposed tax increase. Kristi Kelly, executive director of the Marijuana Industry Group, said that her organization “has been a long-time advocate with better aligning marijuana tax revenue with the positive impact of the communities in which we live and operate.”

Kelly said that the tax increase would equate to about a dollar on a $50 purchase, and that she wasn’t concerned that the increase would drive consumers to the black market.

While briefing reporters on the proposal, Hancock said, “We must thank our marijuana industry for stepping up to say we want to be part of the solution.”

According to the Denver Post, an estimated 80,000 households in Denver spend more than 30 percent of their incomes on rent and housing costs. Officials say that increased housing for low-and-moderate income families, as well as the homeless, would be a priority.

This November, voters in Nevada will consider whether or not to approve the sale of recreational marijuana. The state already has a medical cannabis program, which includes eight specific conditions that qualify patients for a medical marijuana card: cancer, glaucoma, AIDS and conditions that include muscle spasms, seizures, severe nausea, severe pain or wasting.

Currently, Nevada is one of two states that allow the possession and purchase of medical marijuana from out-of-state residents. Maine recognizes medical marijuana cards from other states as long as the patient has their physician fill out a form for the state regulatory agency. Hawaii will allow qualifying patients from out of state to purchase medical marijuana on January 1, 2018.

Arizona, Delaware, Maine, Michigan, New Hampshire and Rhode Island allow patients from other states to use marijuana, but generally not to purchase it.

Polls in Nevada show widespread support for legalizing recreational marijuana. If approved, the Initiative to Regulate and Tax Marijuana would be similar to laws adopted in Washington and Colorado, which tax and regulate cannabis like alcohol. Legalization in the Silver State would permit anyone 21 or over to purchase recreational cannabis.

Proponents of the measure believe that legal recreational cannabis could create millions of dollars in tax revenue, as well as saving money spent on marijuana enforcement and prosecution for marijuana-related offenses. Joe Brezny, spokesperson for the Coalition to Regulate Marijuana Like Alcohol, estimates that the U.S. spends about $78 billion in marijuana prohibition efforts.

Tourism is big business in Nevada, but because marijuana is still federally illegal, don’t expect to be able to light up in casinos. Nevada Gaming Control Board Chairman A.G. Burnett said, “people who have a gaming license in Nevada are forbidden from violating not just Nevada law, but all other laws, including the laws of other states and federal law.” Casinos cannot currently participate in the medical marijuana industry for that same reason.

 

Mountain High Suckers is expanding into Nevada in 2016. Look for our THC-and CBD-enriched hard candies at your favorite Silver State dispensary.

cannabis-salesColorado medical and recreational cannabis sales reached a new high in April, totaling $117.4 million worth of flower, edibles and concentrates. This is the highest monthly total since recreational sales began in 2014.

Based on 2015 sales, an analytics company found that three of the most profitable days of the year for cannabis sales are during the four days leading up to, and including, 4/20.

Despite a snowstorm that forced rescheduling the annual 4/20 rally, cannabis enthusiasts didn’t let the unexpected weather put a damper on the holiday. Marijuana dispensaries sold almost $76.6 million in recreational cannabis, an 80 percent increase from $42.4 million in April 2015. Medical cannabis sales also saw an increase in sales by 22 percent, for a total of $40.8 million.

In addition, the demand for marijuana edibles and concentrates is higher than ever. Retail sales of concentrates in the state’s medical and recreational markets surged 125% in the first quarter of this year from the same period in 2015, according to BDS Analytics. Cannabis edibles sales rose to 53%.

The record sales also mean a huge boost to state tax revenue. Colorado has three taxes on sales of recreational marijuana: the standard 2.9 percent state sales tax, a special 10 percent sales tax and a 15 percent excise tax on wholesale transfers, which is earmarked for school construction projects. The more than $5.5 million collected in excise tax is a monthly record from when recreational sales began in January 2014, and brings the yearly total to $16.7 million.

Medical and recreational sales generated almost $57 million in taxes and fees during the first four months of 2016.