Denver’s Marijuana Tax Revenue Supports Public Services in First 10 Years of Legal Sales
Denver, Colorado, has released its annual report on marijuana industry trends, highlighting how the city has distributed hundreds of millions of dollars in cannabis tax revenue to public initiatives over the past decade. The report shows that despite a decline in marijuana sales and revenue in 2023, the city has continued to allocate funds to support homelessness services, affordable housing, education, and regulation.
In 2023, the city allocated:
* $7.95 million to homelessness services
* $7.53 million to affordable housing
* $3.74 million to the Malone Fund
* $3.32 million to education
* $2.36 million to regulation
* $2.14 million to enforcement
The report also notes a decline in illicit cannabis activity, with marijuana-related offenses representing only 0.2% of crimes in 2023. Law enforcement seizures of illicit marijuana have decreased significantly, from 2,435 pounds in 2022 to 266 pounds in 2023.
Denver was the first city in the US to allow adult-use retailers to open in 2014, following a statewide reform initiative. The city’s mayor, Mike Johnston, emphasized the importance of Denver’s leadership in cannabis regulation, stating that the city will continue to share its lessons learned with national lawmakers considering proposals for national legalization, decriminalization, and rescheduling of marijuana.
The report also highlights the decline in cannabis licenses, with a 7% decrease from January 2023 to January 2024. Medical marijuana licenses accounted for the majority of the decline, which is likely associated with a decline in medical marijuana sales.
Denver has achieved a significant milestone, with adult-use and medical cannabis tax revenue exceeding $500 million since 2010. The city has also formed a work group to explore local regulations under a statewide psychedelics legalization law that is now being implemented in Colorado.
Separately, a statewide survey found that rates of youth marijuana use in Colorado declined slightly in 2023, remaining significantly lower than before the state legalized cannabis for adults.
