While history was made in Colorado in 2014 when marijuana became legal for recreational use, a new report has highlighted some of the issues that have arisen in the years since. Businesses are shuttering or laying off workers as sales have plunged by $700 million. The average price per gram of recreational marijuana flower was $4.83 in 2021, $3.84 in 2022 and $3.43 in 2023. The state issued 685 licenses, but the market is becoming increasingly competitive.
Colorado abounded with legal weed success stories after it legal recreational marijuana. Things are more complicated now. The samples encompassed 12 strains, including indica, sativa, and hybrid types, and varied in reported THC values. Some had ranges, such as 12.8%. Cannabis taxes have not solved Colorado's budget woes. The state has collected more than $2.3 billion in marijuana taxes since legal, but the industry is facing challenges.
Moving marijuana to Schedule III would relieve local businesses of that tax burden and enable them to write off expenses such as electricity. By the numbers, tax revenue from both medicinal and recreational sales reached $48.1 million in Denver last year, down from $56.2 million. Colorado's adult-use and medical marijuana sales totaled $115.4 million in January, down $418,111 month-over-month, or less than 1%.