Colorado Is Using $3 Million From Marijuana Tax To Provide Food And Housing For The Homeless

By any mean, making marijuana legal is not a new issue. And what’s even more, it has always been, and it will continue to be, an uphill battle! This is mostly because it’s classified as a Schedule 1 Illicit drug.

Technically this is putting it on a par with some other drugs like, cocaine, heroine and LSD.

The FDA reserves this drug ranking that have the most potential for abuse, and absolutely no substantiated medicinal value. But, some proponents of marijuana say that based on these very requirements, cannabis doesn’t belong in this category, and it is completely unfairly stigmatized.

Different pro-cannabis groups have been working tirelessly for about 50 years, only to take cannabis out of the dark. They say that marijuana is nothing less than a miracle drug, and it totally doesn’t deserve the bad reputation that it has for many years.

It looked like they’re making progress little by little, and all of a sudden their hard work and efforts paid of at last, when the state of Colorado has legalized the marijuana for recreational use, back in October, 2014.

Along with this legalization, miles of taxes and red tape also became a part of this deal.

Colorado Marijuana Tax

Sometimes people think that legalizing marijuana (or any other drug for that purpose) is very simple, just like passing a law and the day after that it becomes legal.

But there is a lot more involved, and this process can take a couple of months, and sometimes it takes years. For example for Colorado, The Colorado Amendment 64, was passed by the voters on November 6, 2012. 

And it was not until January 2014 that the recreational use of marijuana became legal.

It wasn’t a surprise, when the state received record levels of tax revenue, with the introduction of the Colorado Marijuana Tax.

As per the Department of Revenue (a state run office), records show that before the finish of the 2015 monetary year an astounding $996,184,788 worth of cannabis was sold in Colorado alone. This number just incorporates items sold among authorized and directed marijuana sellers. 

Those business converted into more than $135 million in marijuana taxes and expenses for 2015, up from $76 million since during its initiation in 2014. The State additionally guaranteed $35 million of this cash would go to construct new schools. 

Colorado’s 2015 marijuana tax and sales sums additionally connote a “recovery” of sorts for each resident who enthusiastically battled to expel its illicit status. The achievement, spoke to by the inundation of assessment dollars, is confirmation to these gatherings that sanctioning weed was an “easy decision” and indeed, ought to have been done years back. 

Other Effects 

As per monetary advancement measurements, the production and clearance of sanctioned weed has animated development in numerous different territories, including new business adventures, for example, stores that sell cannabis, instruments expected to make it, and other industry related things. True to form, it’s converted into a quite robust assessment help for the state. 

With this authorization, specialists declare there has likewise been increasingly social development and acknowledgment all through the province of Colorado. 

Regions have acknowledged the decision and welcome the development of new organizations and even the clients these organizations draw in. At long last, legalization of cannabis has enabled individuals to use a managed item securely, versus an illicit one that can be a bet regarding health, immaculateness and even sales. 

A 2016 article in the Boston Globe expresses, “Legalization has introduced a great many new openings in the blossoming business, brought $135 million into state coffers a year ago, and finished the prohibition of a generally used substance.” By all checks, it is a success win situation. 

2016 Update 

As of March 9, 2016, the state executed a few changes to the Colorado marijuana tax. It currently makes up of a 2.9% retail and restorative marijuana sales tax, and a 10% retail weed special sales tax. It likewise incorporates a 15% marijuana special sales tax, in addition to any retail/restorative marijuana application and permit expenses. 

Altogether, the assessment on legal marijuana is a little more than 30 percent (30.43 % to be careful). While this may appear to be powerful, and it will be, it just works out to generally 1.3 percent of the state’s $10.3 billion when all is said in done expense assortments. 

In the same way as other state charges gathered, these monies can be jumped up among different locales inside that state. A short time later, nearby authorities can figure out where the cash is best utilized. 

This year, Aurora, the third biggest city in Colorado, asserts the city will use more than 33 percent of the $4.5 million it hopes to get to help nearby not-revenue driven destitute associations.

Cannabis Gives Back

Marijuana had a very bad reputation for many years, but the city council members in Aurora just want to make sure that this drug does something good.

So over the next couple of years, they’ve promised funds to be allocated to a few non-profit groups:

  • The Comitis Crisis Center, which will help in-crisis individuals.
  • The Colfax Community Network, also a non profit group that will support families living in motels.
  • Aurora Mental Health, which is going to receive new vans to be used for homeless outreach efforts.

The city has also pledged about $680,000 in order to be set aside from the other vital city non-profit organizations and about $2 million to be used to build the newest recreation center.

The proponents of legalizing marijuana certainly are very happy! According to the November 2015 survey conducted by the Quinnipiac University, 53% of the voters of Colorado said that the legalization of marijuana was good for the state.

Even though that marijuana might not be everyone’s favorite thing, legalizing it certainly has had a very positive effect so far!

Sources:
dailyhealthpost.com
curiousmindmagazine.com

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