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Fort Collins has collected more than $209,000 in sales tax revenue so far this year from sales at medical marijuana businesses, according to city records. The total is likely to top $250,000 by the end of the year.
The sales tax collected thus far represents nearly $7 million in product sales. The biggest month so far was April, which brought in $29,352 in sales tax revenue on $888,454 in reported sales, according to the city.
The medical marijuana revenue is "real money" and a boost to Fort Collins' coffers, said Mike Freeman, chief financial officer for the city. But it represents only 0.5 percent of the city's total sales tax revenue for the year.
"I wouldn't say it's a windfall for the city," Freeman said.
About 75 percent of the sales tax revenue has gone into the city's general fund, which pays for a variety of services, with rest going toward areas funded by dedicated sales taxes – natural areas, capital im-provements and pavement management.
The sales tax figures are significant, said Dave Schwaab, co-owner of Abundant Healing, 351 Linden St.
"It means people want medical marijuana," he said. "I've heard people say they would rather pay the tax and be able to buy in a safe, comfortable setting than on the black market like they used to do to meet their medical needs."
Whether the sales tax revenue Fort Collins has received covers the city's administrative costs for dealing with medical marijuana dispensaries and cultivation operations is not clear, Freeman said.
The program has been funded by fees from medical marijuana businesses. So far the city has collected $18,000 in applications fees, said Ginny Sawyer, administrator with neighborhood services.
Businesses are charged $500 to apply for a license and another $700 when a license is issued. A business would have to pay a $700 annual inspection fee to keep its license. So far the city has issued eight provisional licenses.
The program requires significant staff time in several city offices, Sawyer said. The clerk's office processes applications, including mandatory background checks, and zoning officials determine whether the proposed location of a business meets city regulations.
The police department and building office inspects potential businesses to ensure they meet security requirements and adhere to building codes. Some facilities have required more than one building inspection, Sawyer said.
Officials are getting a better handle on the cost of the program, and may recommend higher fees, she said.
"I could see that changing in the future to make sure we are covering our costs," she said.
NewsHawk: MedicalNeed:420 MAGAZINE
Source:coloradoan.com
Author: KEVIN DUGGAN
Contact: coloradoan.com | Fort Collins Contact Us | The Coloradoan
Copyright: 2010 coloradoan.com
Website:Fort Collins reaps revenue from medical marijuana sales | coloradoan.com | The Coloradoan
The sales tax collected thus far represents nearly $7 million in product sales. The biggest month so far was April, which brought in $29,352 in sales tax revenue on $888,454 in reported sales, according to the city.
The medical marijuana revenue is "real money" and a boost to Fort Collins' coffers, said Mike Freeman, chief financial officer for the city. But it represents only 0.5 percent of the city's total sales tax revenue for the year.
"I wouldn't say it's a windfall for the city," Freeman said.
About 75 percent of the sales tax revenue has gone into the city's general fund, which pays for a variety of services, with rest going toward areas funded by dedicated sales taxes – natural areas, capital im-provements and pavement management.
The sales tax figures are significant, said Dave Schwaab, co-owner of Abundant Healing, 351 Linden St.
"It means people want medical marijuana," he said. "I've heard people say they would rather pay the tax and be able to buy in a safe, comfortable setting than on the black market like they used to do to meet their medical needs."
Whether the sales tax revenue Fort Collins has received covers the city's administrative costs for dealing with medical marijuana dispensaries and cultivation operations is not clear, Freeman said.
The program has been funded by fees from medical marijuana businesses. So far the city has collected $18,000 in applications fees, said Ginny Sawyer, administrator with neighborhood services.
Businesses are charged $500 to apply for a license and another $700 when a license is issued. A business would have to pay a $700 annual inspection fee to keep its license. So far the city has issued eight provisional licenses.
The program requires significant staff time in several city offices, Sawyer said. The clerk's office processes applications, including mandatory background checks, and zoning officials determine whether the proposed location of a business meets city regulations.
The police department and building office inspects potential businesses to ensure they meet security requirements and adhere to building codes. Some facilities have required more than one building inspection, Sawyer said.
Officials are getting a better handle on the cost of the program, and may recommend higher fees, she said.
"I could see that changing in the future to make sure we are covering our costs," she said.
NewsHawk: MedicalNeed:420 MAGAZINE
Source:coloradoan.com
Author: KEVIN DUGGAN
Contact: coloradoan.com | Fort Collins Contact Us | The Coloradoan
Copyright: 2010 coloradoan.com
Website:Fort Collins reaps revenue from medical marijuana sales | coloradoan.com | The Coloradoan
