The $605 Million Legal Marijuana Market Will Be Awesome For Color

[OZ Stoners]

Who would have ever thought you could make money selling drugs?

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Reuters

On Tuesday, Colorado Gov. John Hickenlooper signed into law the first framework for a legal, regulated marijuana market in the United States. 

Colorado expects the sale of pot to be a significant boon to state finances.

They're already planning for a hefty tax on the substance, and one look at the potential size of the industry has those involved salivating. 

At the end of last month, when the bill was still under consideration, the  Colorado Futures Center at Colorado State University released a report detailing the expected fiscal impact of the shift. 

Even though the analysis doesn't include the economic benefits — we've already detailed several auxiliary firms that work for legal marijuana businesses that are poised to make a fortune from the security, financial data and advertising and product research needs of the new marijuana industry — it's still an exciting look into one of the most interesting emerging markets on the planet. 

There law states that there is a 15% excise tax imposed at the transaction point between marijuana cultivators and retail stores. Then, there is a 15% sales tax imposed at the point of retail sale to consumers. There's also the 2.9% state sales tax as well. 

Here are the most interesting things we learned from the report:

• The adult recreational market  for marijuana will be worth $605.7 million. This doesn't even include the market for edibles — pot brownies, for example — that comprise a significant aspect of the market. 
• The report estimated that 554,710 Coloradans — around 10% of the state's population — will use marijuana in 2014. This is a conservative estimate. 
• Factoring in the Medical market, the Colorado market for marijuana will be 642,772 people — 12.4% of the state population. 
• With a per-person usage rate of 3.53 ounces per year, the post-legalization estimate of demand for marijuana is 2.4 million ounces — roughly 75 tons — in 2014.
• This doesn't even factor in marijuana tourism. 
• The 15% excise tax will yield an estimate $21.7 million in revenues for Colorado in 2014.
• A 15% sales tax will yield $90.9 million in 2014
• The 2.9% state sales tax will yield $17.6 million. 

Who would have thought that selling marijuana could be profitable?

[sandchu]

FFsake, fook me why aren't our pollies getting on this money spinner in oz. Are our media just too scared to propose change? Why are we not seeing this on the aussie media? Are the majority of our population that brainwashed to think cannabis is worse than alcohol and tobacco?     Are the big mining companies worried no one will pass the drug tests? they still have people purchasing and smoking that synthetic shite. why is this country got such pussy leaders who are too worried about their wallets and sticking their noses up each others arse to lick polish their egos.   

 

Apologies about rant everyone it just shits me as im sure it does you guys also. makes me   

[Lenore]

We should all forward this news article to all our local members and any polly we can think of.

If they all start getting and influx of a news article like this, they might (yeah, suuuure!) sit up and take notice.....

[Sir PsychoHashy]

We should all forward this news article to all our local members and any polly we can think of.

 

If they all start getting and influx of a news article like this, they might (yeah, suuuure!) sit up and take notice.....

 

I'm pretty sure our esteemed politicians are fully aware of the financial potential of legalising cannabis, and would love to tap into it, but the problem for them is more of potential political suicide.  Just like they are aware that a majority of the population would support it, as well as other things such as gay marriage etc, democracy in action as usual.

 

I'm a bit surprised the Gillard government isn't floating the idea as an election promise.  They're pretty much at the point of having nothing to lose, and they could claim that the revenues would fix the country's financial woes.  The fact that they aren't says to me that it's the organisations behind the scenes that are in control, as usual.  Best way to bring about change at a Federal level would be to turn Parliament House into a hot box next sitting, and pump smoke in through the vents, then watch Julia and Tony fight over the last Tim Tam

[Lenore]

The more pressure they get from the public, the more likely they will give in. IMHO.