Dispensing legal marijuana is hot in Colorado. Huge sales in the first week alone may amount to over $5 million. This is good news for the tax revenue in the state of Colorado, as they’ll be collecting 25% retail sales tax. Sales were good and the stores or dispensaries did not run out of pot, this first week of 2014.
Thirty seven dispensaries reported their sales so far and business is booming for the now legal and recreational use of marijuana. Green for green in the rocky mountain high country.
A person must be 21 years or older to purchase the product and Colorado expects sales to climb as high as $600 million annually. Seventy million dollars would benefit the tax pool for the state of Colorado. That’s a lot of cash and a lot of pot.
New Year’s Day sales alone exceeded the $1 million mark. Large shops sold approximately 50-60 pounds, whereas smaller shops sold around 20-30 pounds. The law states a Colorado resident can purchase 1 oz. and people visiting the state or non-residents can buy 1/4 oz.
No supply problems have been reported thus far. Recreational sale of legal marijuana seems to be hot in Colorado, in this first week of selling to people with non-medical requirements.
The US Justice Department has said as long as states, Washington and Colorado, prevent selling to other states, minors and possible drugged driving individuals, then they won’t seek changes in the legalization laws. It remains illegal in the United States, as the Federal government has not changed its law as yet.
The Federal laws of prohibition goes by traditional laws of business and banking, so many retailers will not have write-offs or tax advantages. And no credit cards can be used, cash only. This cash only is what may make it difficult for businesses to actually make money and keep it. Representatives of Colorado are busy attempting to change or add new laws to assist businesses in their state.
Rep. Ed Perlmutter, a Colorado Democrat, has a bill H.R. 2652, which seeks reform for banks and marijuana businesses. They of course hope Congress will act and act quickly in this matter. This bill would allow for banks to legally conduct business with marijuana dispensary businesses. As it stands now banks are unable to do this, legally. So they in turn could be charged with illegal activity.
Actually, marijuana has been legal for a year in the states of Washington and Colorado, but January 1st, 2014 became the date which it was sold to non-medical use people. The state of Washington will open its marijuana dispensaries for recreational use pot later in 2014.
Christian Sederberg, the attorney who helped put the law through in Colorado sat in his office and said, “The roll-out’s gone amazingly well, and we knew it would. We are on the right side of history.” This grassroots campaign, with no institutional support, believes marijuana less harmful than alcohol. Welcome to the new green business of 2014, an industry still prohibited by federal law, but apparently legal marijuana is hot in Colorado right now.
by Kim Troike