Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Marijuana tax revenue lower than forecast so far
Author: Scarinci Hollenbeck, LLC
Date: May 19, 2014
Key Contacts
Back
One of the strongest cases for the legalization of marijuana in Colorado was the untapped business tax revenue that might be had by states that allowed the drug to be sold. However, officials in the state are now scaling back first-year estimates for total sales and business tax revenue from the $1 billion in sales for the coming fiscal year predicted earlier this year, according to Bloomberg Businessweek. During January and February, the first two months that recreational marijuana could be sold in Colorado, the state collected roughly $4.2 million in sales and excise taxes – less than half of the range of $5.5 million to $8.9 million that was estimated by state legislators in 2013.
“I don’t think it’s the savior for state budgets,” Phyllis Resnick, lead economist at the Denver-based Colorado Futures Center of Colorado State University, told the news source. “It brings in additional revenue, but it also brings in additional costs for administration of the system and regulation and monitoring. It’s not free money.”
State officials are suggesting that the low sales levels are due to an unexpectedly slow licensing and approval process in Colorado for vendors to sell marijuana, Businessweek explained. Uncertainty caused by marijuana’s ongoing illegal status at the federal level may also have led to a shortage of supply.
It is possible that sales will pick up in coming months as more shops get licensed to sell marijuana and supply increases. In April, legislators expected to bring in approximately $134 million in taxes from the marijuana industry, Reuters reported. Around 30 percent of this sum is earmarked for school districts, with the rest going to treatment, school construction and deterring young people from using the drug. New revenues, however, will only make up about 1.4 percent of the state’s available general fund.
- Industries: Cannabis
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Author: George McGowan
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.