The problem with legalized cannabis use is that it raises so much tax that citizens can end up getting a chunk of it back to them in a rebate.
Residents of Colorado will be pleased when they get their share of the excess $50 million in taxes raised from the regulation of cannabis there. The law in the state of Colorado requires that any tax surplus be returned to the citizens…a lovely sweetener for any previous naysayers of legalization.
National financial institutions the world over must now be looking at these promising figures coming out of America as a solution (or part solution) to their economy woes. Money in the tens of millions of dollars is not to be sniffed at by local politicians so they will hopefully use this documented outcome for Colorado as a reference point if arguing for the legalization of cannabis trade.
When Colorado legalized cannabis for recreational use did they did one of the smartest things possible especially when it comes to the state’s infrastructure and education:
A 15% retail cannabis excise tax goes toward public schools and construction fees. Residents voted in November 2013 for an aggressive 10% sales tax and a 15% excise tax on recreational cannabis sales. Medical and recreational cannabis-related revenue also comes from a standard sales tax, as well as license fees. Cannabis-related revenue not allocated to the school fund goes towards such things as substance abuse programs, medical research, and police training.
Colorado state constitution limits how much tax money the state can take in before has to give some back to the citizens. That means Coloradoans may each get there own cut from the millions of dollars collected in the first year of legal weed.
The question people will be asking themselves is: “Why didn’t we do this sooner?”
Find related posts about Colorado HERE