Katelyn Baker
Well-Known Member
Recreational marijuana is an integral part of local economies, according to Telluride and Ridgway officials.
Since both towns started issuing licenses for recreational marijuana retail sales in 2014, the tax revenue from such businesses has provided another source of income for each area.
Lynne Beck, finance director for the Town of Telluride, explained that in 2014, the first year of recreational marijuana sales, $234,074 in local taxes was generated.
"That first year we were also really busy during the winter months," she said.
Over the past two years, the local tax revenue from marijuana has been $181,252 in 2015 and $191,485 in 2016, Beck said.
Beck theorized that the spike in the first year of recreational marijuana sales might have been due to the fact that the industry was brand new. "That first (year of sales) was the strongest year," she said.
Colorado voters approved recreational marijuana in a statewide referendum in November 2012, but in many locales, it took awhile for the industry to develop. Many municipalities and counties struggled for months to write local regulations to govern the business.
Local recreational marijuana sales have accounted for an average of about 2.3 to 3 percent of Telluride's annual sales tax revenue over the past two years.
"(Local tax revenue) is staying steady in our overall sales tax," Beck said. "My guess is it's going to stay steady."
Tourism is one factor that consistently contributes to recreational marijuana sales, especially during ski season, Beck said. Visitors from places where marijuana is still illegal may choose to visit areas like Telluride and Ridgway over other possible destinations.
"(Out-of-state visitors) can't take it out of the state," Beck said. "They have to use it while they're here."
Telluride doesn't keep month-to-month records of recreational marijuana sales, but Beck suggested that sales increase during ski season and the summer festival slate.
For example, last summer there were two additional events at Telluride Town Park – the Pretty Lights Festival and two consecutive nights of Neil Young concerts – which may have helped marijuana sales.
If recreational marijuana wasn't an option in town, Beck isn't sure if there would be a substitute to make up for the sales numbers.
"It's hard to say if there would be other spending," she said. "It's part of our local economy at this point."
Ridgway's position at the meeting of highways 550 and 62 provides an ideal shopping spot for travelers en route to Telluride, Montrose or Ouray, since the town's three recreational marijuana shops are close to that intersection, according to Ridgway Town Manager Jennifer Coates.
"Ridgway is the first place in awhile where you can buy (recreational marijuana)," she said. Montrose, a half-hour's drive north of Ridgway, has banned recreational sales.
Coates said when she asked local shop owners about sales over the past year, there was a general consensus that residents and visitors alike were buying.
"(Shop owners) basically told me everybody (is buying)," she said.
In 2015, the town collected $110,300 in local taxes. The number increased to $156,914 in 2016. Numbers for 2014 were not available.
Coates said local revenue from the town's three recreational dispensaries is "significant" to the town's vitality.
While the rush to apply for recreational licenses has subsided since 2014, Coates said there has been a recent inquiry about cultivation.
Both towns apply pot sales-tax monies to their general funds, to be used for administrative purposes and other municipal budget costs.
Telluride and Ridgway receive a percentage of state tax revenue each year as well.
The Colorado Department of Revenue announced recently that $1.3 billion in regulated marijuana sales took place in calendar year 2016, generating nearly $200 million in state tax revenue.
Ridgway received $65,166 from the state last year, while Telluride's share was $54,633.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Recreational Marijuana Boosts Local Economies
Author: Justin Criado
Contact: (970) 728-9788
Photo Credit: Justin Criado
Website: The Watch
Since both towns started issuing licenses for recreational marijuana retail sales in 2014, the tax revenue from such businesses has provided another source of income for each area.
Lynne Beck, finance director for the Town of Telluride, explained that in 2014, the first year of recreational marijuana sales, $234,074 in local taxes was generated.
"That first year we were also really busy during the winter months," she said.
Over the past two years, the local tax revenue from marijuana has been $181,252 in 2015 and $191,485 in 2016, Beck said.
Beck theorized that the spike in the first year of recreational marijuana sales might have been due to the fact that the industry was brand new. "That first (year of sales) was the strongest year," she said.
Colorado voters approved recreational marijuana in a statewide referendum in November 2012, but in many locales, it took awhile for the industry to develop. Many municipalities and counties struggled for months to write local regulations to govern the business.
Local recreational marijuana sales have accounted for an average of about 2.3 to 3 percent of Telluride's annual sales tax revenue over the past two years.
"(Local tax revenue) is staying steady in our overall sales tax," Beck said. "My guess is it's going to stay steady."
Tourism is one factor that consistently contributes to recreational marijuana sales, especially during ski season, Beck said. Visitors from places where marijuana is still illegal may choose to visit areas like Telluride and Ridgway over other possible destinations.
"(Out-of-state visitors) can't take it out of the state," Beck said. "They have to use it while they're here."
Telluride doesn't keep month-to-month records of recreational marijuana sales, but Beck suggested that sales increase during ski season and the summer festival slate.
For example, last summer there were two additional events at Telluride Town Park – the Pretty Lights Festival and two consecutive nights of Neil Young concerts – which may have helped marijuana sales.
If recreational marijuana wasn't an option in town, Beck isn't sure if there would be a substitute to make up for the sales numbers.
"It's hard to say if there would be other spending," she said. "It's part of our local economy at this point."
Ridgway's position at the meeting of highways 550 and 62 provides an ideal shopping spot for travelers en route to Telluride, Montrose or Ouray, since the town's three recreational marijuana shops are close to that intersection, according to Ridgway Town Manager Jennifer Coates.
"Ridgway is the first place in awhile where you can buy (recreational marijuana)," she said. Montrose, a half-hour's drive north of Ridgway, has banned recreational sales.
Coates said when she asked local shop owners about sales over the past year, there was a general consensus that residents and visitors alike were buying.
"(Shop owners) basically told me everybody (is buying)," she said.
In 2015, the town collected $110,300 in local taxes. The number increased to $156,914 in 2016. Numbers for 2014 were not available.
Coates said local revenue from the town's three recreational dispensaries is "significant" to the town's vitality.
While the rush to apply for recreational licenses has subsided since 2014, Coates said there has been a recent inquiry about cultivation.
Both towns apply pot sales-tax monies to their general funds, to be used for administrative purposes and other municipal budget costs.
Telluride and Ridgway receive a percentage of state tax revenue each year as well.
The Colorado Department of Revenue announced recently that $1.3 billion in regulated marijuana sales took place in calendar year 2016, generating nearly $200 million in state tax revenue.
Ridgway received $65,166 from the state last year, while Telluride's share was $54,633.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Recreational Marijuana Boosts Local Economies
Author: Justin Criado
Contact: (970) 728-9788
Photo Credit: Justin Criado
Website: The Watch
