Colorado’s Economy Boost
Colorado was one of the first states to legalize marijuana for recreational sales on
January 1, 2014. Since then the state has become the fastest growing economy in
the United States. Colorado’s economy has seen an increase in arrests and judicial
savings, tax revenue, and in employment, as well as side effects to the communities.
The economy is benefiting but does it outweigh the social concerns?
The first year brought in big changes to the state of Colorado.
The legalization has decreased arrest by 84% with 9,011 arrests for possession of
marijuana in 2010 to 1464 arrests in 2014. Typically each possession case costs
roughly $300 each, the drop compared from 2014 to 2010 would increases savings
in the adjudicatory cost by millions. During the same period, 90% drop was seen in
distributing and cultivating arrests. Once again adding the cost of adjudication to
savings.
By the end of the first year, Colorado had brought in a total of $76,152,468 in license,
fee and tax income for both recreational and medical cannabis. Out of that, $44
million represented taxes on recreational cannabis, which included a 10% special
sales tax, and a 15% excise tax (only to be used to construct schools) on wholesale
marijuana sales. For the year of 2014, excise tax was $13.3 million. The following
