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Citing uncertainty in the marijuana market, Gov. John Hickenlooper has ratcheted back his projection on how much tax the newly legal drug could produce. Hickenlooper planned to present his scaled-back request for funding services from that lowered projection to lawmakers on Tuesday. He said in February that medical and recreational pot taxes and fees would produce some $134 million for the fiscal year beginning in July. But Hickenlooper has pared back those expectations by more than $20 million, citing uncertainty in the market.
The governor's budget director, Henry Sobanet, said Monday the scaled-back numbers came after analysts set wildly different projections after seeing tax results of Colorado's first full month of retail recreational marijuana. Colorado made about $3.5 million from medical and recreation pot taxes and fees in January. Analysts expect that number to rise dramatically as new stores open and a one-time tax waiver on marijuana plants expires. However, legislative forecasters predicted last month that recreational pot would produce about $65 million in taxes next year, about half of the governor's forecast of $125 million.
Sobanet said the governor revised his proposed expenditures "more prudently based on the lower of the two numbers." Colorado voters approved the pot taxes last year – 10 percent sales taxes and 15 percent excise taxes, in addition to regular sales taxes. The first $40 million from excise taxes has already been designated for school construction; any remaining money will be appropriated by lawmakers. The governor asked lawmakers not to trim some of his original proposals – including $45.5 million for youth use prevention and $12.4 million for public health.
News Moderator - The General @ 420 MAGAZINE ®
Source: Denverpost.com
Author: The Associated Press
Contact: Contact Us - The Denver Post
Website: Governor cuts pot revenue forecast by $20 million - The Denver Post
The governor's budget director, Henry Sobanet, said Monday the scaled-back numbers came after analysts set wildly different projections after seeing tax results of Colorado's first full month of retail recreational marijuana. Colorado made about $3.5 million from medical and recreation pot taxes and fees in January. Analysts expect that number to rise dramatically as new stores open and a one-time tax waiver on marijuana plants expires. However, legislative forecasters predicted last month that recreational pot would produce about $65 million in taxes next year, about half of the governor's forecast of $125 million.
Sobanet said the governor revised his proposed expenditures "more prudently based on the lower of the two numbers." Colorado voters approved the pot taxes last year – 10 percent sales taxes and 15 percent excise taxes, in addition to regular sales taxes. The first $40 million from excise taxes has already been designated for school construction; any remaining money will be appropriated by lawmakers. The governor asked lawmakers not to trim some of his original proposals – including $45.5 million for youth use prevention and $12.4 million for public health.
News Moderator - The General @ 420 MAGAZINE ®
Source: Denverpost.com
Author: The Associated Press
Contact: Contact Us - The Denver Post
Website: Governor cuts pot revenue forecast by $20 million - The Denver Post
