DENVER, Colo. — Colorado has officially crossed a historic benchmark, collecting over $3 billion in marijuana tax revenue since the launch of legal sales in February 2014, according to the latest Department of Revenue (DOR) data released on August 21.
July Sales Push Revenue Past $3 Billion
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In July 2025, marijuana sales brought in $20.3 million in tax and fee revenue.
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Total marijuana tax collections now stand at $3,012,831,657.
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So far in 2025, Colorado has generated $139.3 million in marijuana-related tax income.
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Year-to-date marijuana sales have reached $549 million, contributing to a cumulative $17.45 billion since legalization.
How Colorado Collects Marijuana Taxes
The state applies taxes and fees from multiple sources, including:
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2.9% State Sales Tax → Applied to marijuana sold in stores
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15% Retail Marijuana Sales Tax → Shared between state and local governments
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15% Wholesale Excise Tax → Applied to marijuana transfers between businesses
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Licensing & Application Fees → Collected from dispensaries and growers
Where the Revenue Goes
Colorado distributes marijuana tax revenue across several key programs:
1. Retail Marijuana Sales Tax (15%)
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10% → Goes directly to cities and counties based on local sales.
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71.85% → Allocated to the Marijuana Tax Cash Fund, which funds:
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Public health & school health programs
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Substance abuse prevention & treatment
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Law enforcement efforts
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15.56% → Flows into the State General Fund to support education, human services, and other priorities.
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12.59% → Directed to the State Public School Fund.
2. Wholesale Excise Tax (15%)
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Fully allocated to the Building Excellent Schools Today (BEST) Fund.
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The first $40 million annually supports school construction projects.
Impact on Education & Public Health
On average:
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About 37% of marijuana tax revenue supports K–12 education.
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Roughly 20% funds the Department of Human Services, covering behavioral health and addiction recovery services.
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Remaining funds cover affordable housing grants, mental health services, bullying prevention programs, pesticide regulation, black market enforcement, and impaired driving prevention campaigns.
Colorado’s Growing Marijuana Economy
Despite slight seasonal fluctuations in monthly sales, Colorado remains one of the top states in the U.S. for marijuana-generated income. With monthly revenues exceeding $20 million, the state is on track to add hundreds of millions more to its coffers by the end of 2025.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Katie is a senior who has been on staff for three years. Her favorite type of stories to write is reviews and features. Katie’s favorite ice cream flavor is strawberry.
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