Status Report:

Marijuana Legalization in

Colorado After One Year of

Retail Sales and Two Years of

Decriminalization

Since the first retail marijuana stores opened

Tax Revenue

on January 1^st, 2014, the state of Colorado

Data released by the state Department of

has benefitted from a decrease in crime rates,

Revenue reveal that tax revenue from retail

a decrease in traffic fatalities, an increase in

marijuana sales amounted to $40.9 million

tax revenue and economic output from retail

between January 2014 and October 2014, not

marijuana sales, and an increase in jobs.

including revenue from medical marijuana and

licenses and fees.ⁱⁱ

Arrests and Judicial Savings

Of the marijuana tax revenue already collected,

According to data from the Colorado Court

the Colorado joint budget committee set aside

System, marijuana possession arrests have

$2.5 million to increase the number of health

dropped 84% since 2010. In 2010, 9,011 people

professionals in Colorado public schools.ⁱⁱⁱ In

were arrested for marijuana possession. Using

November 2014, the state awarded the first

the same data we are projecting 1,464

$975,000 in grants to Colorado schools to be

possession arrests for 2014. Given that arrests

used to hire health professionals.^iv The funds

such as these cost roughly $300 to adjudicate, it

help fill a critical gap in Colorado school districts,

is reasonable to infer that the state is saving

which suffer from a shortage of school health

millions in adjudicatory costs for possession

workers due to 2011 budget cuts.^v Many of the

cases alone in 2014 compared to 2010. Over the

newly hired health workers, including nurses and

same period, arrests for cultivating and

social workers, will focus on mental health

distributing marijuana have also dropped by more

support and on programs to educate students

than 90%.

about drug use.^vi

Decrease in Crime Rates

Decrease in Traffic Fatalities

According to data released by the city of Denver,

Traffic fatalities went down in 2014, according to

violent crime and property crime in Denver

data released by the Colorado Department of

decreased in 2014.ⁱ Violent crime in Denver went

Transportation,^vii challenging claims that the

down by 2.2% in the first 11 months of 2014,

legalization of marijuana would lead to an

compared with the first 11 months of 2013. In the

increase in traffic fatalities.

same period, burglaries in Denver decreased by

9.5% and overall property crime decreased by

In the first 11 months of 2014, the state had 436

8.9%.

traffic fatalities, a 3% drop from the 449 fatalities

in the first 11 months of 2013. The decline in

fatalities in 2014 marks a continuation of a 12-

year long downward trend in traffic fatalities in the

state of Colorado.^viii

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Economic Benefits

ⁱhttp://www.denvergov.org/Portals/720/documents/statistics/2

Colorado has the fastest growing economy in the

014/UCR_Citywide_Reported%20_Offenses_2014.pdf

United States,^ix and Colorado’s unemployment

rate is at a six-year low.^x

ⁱⁱhttps://www.colorado.gov/pacific/revenue/colorado-

marijuana-tax-data

According to the Department of Revenue, 16,000

ⁱⁱⁱhttp://www.colorado.gov/ccjjdir/Resources/Resources/Leg/20

people were licensed to work in the marijuana

14/SB14-215.pdf

industry as of December 31, 2014,^xi though not

all those with licenses may be actively working in

^ivhttp://www.denverpost.com/news/ci_26926069/colorado-

the industry.

hands-out-975-000-pot-funds-schools

Jack Strauss, an economist at the University of

^vhttp://www.denverpost.com/news/ci_25044133/student-

counselor-ratios-bring-challenges-mental-health-support

Denver, assessed the economic impact of two

dispensaries in Denver, Evergreen Apothecary

^vihttp://www.denverpost.com/news/ci_26926069/colorado-

and Colorado Harvest chillums company.^xii

hands-out-975-000-pot-funds-schools

two dispensaries receive an average wage of $17

per hour. Strauss found that the economic impact

^viihttp://www.coloradodot.info/library/traffic/traffic-manuals-

of the two dispensaries amounted to 280 jobs

guidelines/safety-crash-data/fatal-crash-data-city-county

and $30 million in total economic output between

^viiihttp://www.coloradodot.info/library/traffic/traffic-manuals-

January 1, 2014 and June 30, 2014, and that the

guidelines/safety-crash-data/fatal-crash-data-city-

two dispensaries contribute 10 times the tax

county/Colorado_Historical_Fatalities_Graphs.pdf/view

revenue of either a typical restaurant or retail

store.

^ix http://www.businessinsider.com/state-economic-growth-

rankings-2014-8

Youth Prevention Efforts

^xhttps://www.colorado.gov/pacific/cdle/news/november-2014-

colorado-employment-situation

The state has allocated more than $8 million in

retail marijuana tax revenue for youth prevention

^xiEmail communication from Natriece Bryant, Communications

and education, mental health and community-

Specialist, Colorado Department of Revenue, Executive

based developmental programs.^xiii In addition to

Director’s Office, January 5, 2014.

the $2.5 million allocated to fund health workers

in Colorado schools, $2 million of marijuana tax

^xiihttp://static.squarespace.com/static/53af57cfe4b07bdcd67a

revenue has been allocated to help fund

a25e/t/53eaaae7e4b07639494363e7/1407888103203/CHC-

community-based youth services programs that

EA_EconomicImpactStudy_080814+%281%29.pdf

offer mentoring and focus on drug prevention and

school retention, and over $4.3 million will fund

^xiiihttp://www.leg.state.co.us/clics/clics2014a/csl.nsf/fsbillcont3

school-based outreach programs for students

/A9002841A8B1E5A087257CB4007E3F99?Open&file=215_e

nr.pdf

using marijuana.

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nyc@drugpolicy.org | 212.613.8020 voice |

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