Six Months After Legalizing Marijuana, Two Big Things Have Happened in Colorado

[ZombieHorde]

It's now been six months since Colorado enacted its historic marijuana legalization policy, and two big things have already happened:

1. Colorado's cash crop is turning out to be even more profitable than the state could have hoped.

In March alone, taxed and legal recreational marijuana sales generated nearly $19 million, up from $14 million in February. The state has garnered more than $10 million in taxes from retail sales in the first four months — money that will go to public schools and infrastructure, as well as for youth educational campaigns about substance use.

According to his latest budget proposal, Gov. John Hickenlooper expects a healthy $1 billion in marijuana sales over the next fiscal year. That's nearly $134 million in tax revenue. Sales from recreational shops are expected to hit $600 million, which is a more than 50% increase over what was originally expected.

http://mic.com/articles/92449/six-months-after-legalizing-marijuana-two-big-things-have-happened-in-colorado

[msongs]

1. looks like its time to lower the taxes on this product so as to lower prices for customers nt

[Shivering Jemmy]

4. Why lower taxes?

It's a good source of revenue.

[bluedigger]

6. Because they are ridiculously high, even compared to other sin taxes.

And as long as they remain so, the black market will remain strong.

[chknltl]

11. Do you really want to drive the black market out of business?

Please tell me why you think that this particular black market is strong and furthermore why would you put it out of business.

[bluedigger]

16. I can see (and smell) it all around me.

My town and county have refused to allow recreational sales so far, but nobody has any trouble getting pot, including kids. I've been working at a convenience store and it's obvious. Customers come in reeking of weed all the time. You either get it from someone who's growing or find a straw buyer for MMJ. If you factor in gas money, legal rec weed probably costs twice as much as buying locally, not to mention the four hour or more round trip to get it - no problem for the wealthy, but a big problem for people on budgets. Dropping the taxes, along with penalties for unregulated private sales, would help level the playing field, and discourage the black market. I'm pro legalization and enjoy a toke myself, but I am against a completely unregulated market with no controls on access. There's no reason that can't be accomplished in a similar manner to alcohol and tobacco, for similar costs.

[chknltl]

19. I know a great many growers.

Last edited Sat Jul 5, 2014, 02:31 AM - Edit history (1)

I know first hand quite a bit about that 'black market' you would put out of business. Many if not most growers are Mom and Pop outfits or single guys living alone. Success for these operations meant not getting raided by burglars or worse law enforcement. 2nd Amendment Rights for growers? Screw that! Having a gun in the house in order to protect you and yours was a risk most growers chose to forgo because the legal system truly WANTED to find one on the premises.

If one wanted to be successful as a grower you had to live sorta like a Jew in Nazi Germany-you kept your head down ALWAYS. You fretted over light leaks, you fretted over wayward odors getting out to the noses of Postal Carriers, you freaked out when there was an unannounced knock on the door.

The more you grew the bigger the energy expenditure and the electric company was quick to note when the bills went up past what they should have been. This meant that most Mom and Pop operations could ONLY grow enough to pay the bills and put food on the table. Sure, they did not have to set an alarm every morning in order to get up for a drive to the old 9-5 grind BUT their life was never all peaches and cream either.

As things became more lax, as the mom and pops grew less wary about a law enforcement raid, prices went DOWN! Today the average grower gets half what he or she once got. Guess what? Bills did not go down! Mom and Pop outfits are struggling these days and seeking alternatives in order to put food on the table. Many have gone belly-up. Where do you suppose they have gone? It is not like they can file for unemployment. Most growers I know have a food stamp card and actually need it. There is no safety net for the guys you would put out of business.

Using your example of letting things be regulated and run like alcohol or tobacco means a big agri-business moves in. Money you spend on smokes or drinks does not so easily circulate in your community, it instead goes out to Phillips Morris or the Coors family for instance. On the other hand local growers make and spend their money in the local community, it is a win-win for the entire community! I take no issue with regulating pot but I think it unwise to outsource local industry jobs.

My advice: leave the Mom and Pops alone because they supply their products and their subsequent 'ill gotten gains' right back into your local economy. They need to be treated and protected as a cottage industry, their unique strains cherished as the fine wines they are. Let us not be so hurried to bring them and ultimately your local economy any further harm.

[Buddyblazon]

29. I'm a grower and I own a grow store in Colorado...

You are exactly correct. This level of taxation has been great for the black market....

Which is a good thing. I'd much rather my money go to those home growers than Philip Morris or Monsanto.


Keep the taxes high.

[JNelson6563]

30. Grower in MI & I second your agreement.

[Buddyblazon]

31. People are about to discover...

they're 20 year neighbor...the one they love the most...has been growing the entire time.

[SoLeftIAmRight]

18. I will tell you about this

More than 10,000 registered private growers. Much of this product is cleaner and better than much of the stuff in the stores. The black market is where the smart consumers are buying their cannabis.

[chknltl]

20. Hmmm yes and maybe no, not sure about unclean products in stores.

Now do not get me wrong, I know for a fact that there are some fine, perhaps the finest products period available out on the black market. That said, the Green Cross stores in my area demand that your product be tested before they will consider selling it. Here is a sample test result that a local Green Cross store requested prior to sales: http://analytical360.com/m/expired/134383 Now this particular test was a year ago and the pesticide test here has an N/A next to it but I have been told that they DO insist that this particular test be included these days. (btw that sample was from a black marketer the sampling Green Cross store is trying hard to add to its list of growers-proof of what you say about great products that can be found out on the black market.)

I agree with such tests and hope that you may be wrong when it comes to the stores selling unclean products. There are some growers I have met over the years who have no moral scruples when it comes to spraying pesticides on their budding plants. I do not believe the consumer needs to put up with that sort of nonsense because who knows what the inherent health risks are! If what I was told was true about recent testing, it means the Green Cross agrees with me and these tests should weed out such unscrupulousness. This is one reason I think these stores are a pretty good place to get ones smoke.

If you are lucky enough to know a good grower that is great but odds are you only have access to a single nice strain or two. Few growers have the knack it takes to grow multiple strains, it can be a pain in the ass and not so economical. The Green Cross stores have many many strains. Variety is the spice of life and if you are more than a casual smoker you don't need me to tell you about how staying with one or two strains reduces their effects over time.

For these reasons I urge consumers to support their local Green Cross stores if your state has them.

[SoLeftIAmRight]

28. I have been working in the industry in Colorado for five years.

I red carded for years before that. Pesticides are not the only thing to worry about. You can only find what you test for. I work with people in the extraction industry. They process product from many businesses. Most product is not healthy.

Many private growers are not basement growers. Hundreds have warehouses that are inspected regularly. Managing a nice selection of strains is no problem.

Good to hear about the Green Cross. But still, managing problems with indoor grows take a great effort. Once infected a grow facility rarely ever gets shut down and cleaned of all problems. Constant treatment is the norm.

[chknltl]

34. Dag-nab-it, now you went and made me count the years!

I started out in the industry back in 1989......jeebus, I don't know how... but as of this very year I have managed to survive this industry for a quarter century!!! I still have all my toes and fingers but lost all hint of any blond in my pony tail long ago. Years in service does not necessarily translate to enlightenment, I will be the first to tell you that there are far too many 'experts' out there and I am not one of them.

I speak from my own experiences of western Washington. Perhaps it is wrong of me to assume that Colorado is different-followed a different path.

So a few questions: Outside of pesticides what are these unhealthy things you refer too? Are uninspected Mom and Pop outfits not the rule in Colorado? Do your larger grow facilities really fully shut down as a means to treat their pests such as mites and molds or do they shut down for some different malady that I am unaware of?

AFAIK, we too have our larger warehouse ops but they do not constitute the bulk nor do I think are they providing the bulk of the smoke out there. Hopefully, IMO they never will. Most of our smaller Mom and Pop Ops don't have the luxury of full shut downs, (rents, electric, eating, etc makes doing so a hard choice). Our biggest problem is the 2 spotted mite for which there are countless treatments, most of which do not eradicate the problem fully. We do have some problem with Grey Molds but this is not such a problem for every strain and rarely wipes out an entire crop like spider mites can. Powdery Mildew can be another problem but so far fixes for that are easier than Grey Mold and again not the problem that spider mites are.

Regarding the sub-industry of extraction. I know a few someones who do this but truth be told from my limited knowledge, I think the process a bit dangerous for the Mom and Pop ops. It seems like every other week I hear about someone being involved with explosions from using the butane method and I don't know how many of those guys are properly cleaning their product. This is a relatively newer sub-industry grown out of (I think), from a need to find profits from a whole lot of sweet-leaf. This is one area I could see being taken over by a licensed, regulated and inspected outfit. I could see the Mom and Pops taking their sweet-leaf down to their local Green Cross shop to have it turned into consumables or profit-for a cost of course. Is that how it is done in Colorado?

Nuff for now, the Holliday is over for me and someone I know needs a ballast repaired, I look forward to learning from you about Colorado.

[lob1]

2. I read that their crime rate is down, too.

[SomethingFishy]

32. That is the second point in the article...

[lob1]

33. LOL. That's probably where I read it.

It was a long day.

[MagickMuffin]

3. Imagine if ALL states followed CO's lead

Perhaps we could learn how to "grow" the economy with a wonderful cash crop!

[otohara]

26. It's Driving Rentals & Home Prices Up To Ridiculous

amounts. People in my hood are selling homes for $400,000 - and two homes are for rent - one for $2900 and the other $2200 up from $1300.

So I too wish all the states would follow our lead.

[Anansi1171]

5. Why is California now so behind? its not enough FERC killed our economy

In the 2000s, we dont want such a boon from recreational sale?

[Comrade Grumpy]

13. It'll be on the ballot in California in 2016. Just you wait and see.

[Wounded Bear]

7. You left out....

They got their asses kicked in the Super Bowl.

[Comrade Grumpy]

14. By a team from another legal marijuana state. Pot goes on sale in Washington next week.

But it's been legal to possess ever since the 2012 election.

[Wounded Bear]

15. In case you don't know me...

or didn't get the tongue in cheek nature of my post, I live in WA state. GO HAWKS!

[Uncle Joe]

8. 2# The crime rate has dropped dramatically as well.

http://mic.com/articles/92449/six-months-after-legalizing-marijuana-two-big-things-have-happened-in-colorado

2. Denver crime rates have suddenly fallen.

Marijuana-related arrests, which make up 50% of all drug-related crimes, have plummeted in Colorado, freeing up law enforcement to focus on other criminal activity. By removing marijuana penalties, the state saved somewhere between $12 million and $40 million in 2012, according to the Colorado Center on Law and Policy.

According to government data, the Denver city- and county-wide murder rate has dropped 52.9% since recreational marijuana use was legalized in January. This is compared to the same period last year, a time frame encompassing Jan. 1 through April 30.

Thanks for the thread, ZombieHorde.

[blackspade]

9. Amazing.

Hopefully here in KY we can do the same. One day anyway.....

[demigoddess]

10. seems to have put some people to work

growing, selling etc. and their pockets have money that gets spent. Then people pay sales tax on all those purchases!!

[rhett o rick]

12. Hey, you acted surprised......man.

[Personal Damon]

17. Kinda like when we legalized gay marriage up here

You know what happened? Gay people got married. That's it. No marauding gangs of homosexuals and lesbians forcibly "converting" our young boys and girls, no push to legalize sex with goats, no increase in the incidents of rape. NOTHING.

[merrily]

23. Vermont was the first with civil unions, Massachusetts the first

to recognize same gender marriage. No big news to report from NE, either.

On the other hand, Thad Cochran, the Republican from Mississippi who recently won a primary runoff election, has mentioned Southern youths engaging in indecent acts with farm animals well before any state recognized same gender marriage. Maybe before some of them recognized no fault divorce.

[merrily]

21. When Massachusetts decided to start lottery, it was supposed to help with

the tax burden. They do sell tons of lottery tickets, but taxes are high. I haven't looked into what they'd be without the lottery, though.

[Cha]

22. Never Underestimate the Cash flow from Marijuana plants!

2. Denver crime rates have suddenly fallen. It's seems logical to me but compelling to see the statistics!

mahalo ZH

[grahamhgreen]

24. And employment has gotten higher:)

[riderinthestorm]

25. Is this a good time to say "I told ya so" to the neighsayers?

[krispos42]

27. You mean legalizing a consumable product...

...that had been entirely controlled by violent criminal gangs had a much larger and more immediate effect than banning assault weapons and high-capacity magazines?

Gee, who'da thunk?