The Colorado Legislative Council Staff (LCS), described as the “nonpartisan research arm of the Colorado General Assembly,” released a report on Aug. 16 detailing how cannabis taxes are benefitting the state.

According to the analysis, Colorado annual cannabis tax revenue may have decreased in FY 2021-2022 and FY 2022-2023, but cannabis sales remain a consistent stream of funds for Colorado budget—more than any other regulated substance.

In FY 2022-2023, data shows that Colorado collected $282.3 million in cannabis tax revenue, compared to $233.9 million from cigarettes, $60.5 million from tobacco products, $56.4 million from nicotine products, and $56.1 million from alcohol.

Cannabis tax revenue comes from a 15% excise tax, 15% special sales tax, and 2.9% general sales tax. Recreational cannabis purchases are applied with the excise tax and special sales tax, but only state sales tax applies to medical cannabis sales.

In a breakdown of where cannabis tax revenue is distributed, medical cannabis 2.9% sales tax goes directly into the Marijuana Tax Cash Fund while the adult-use cannabis sales 15% special sales tax is divided into the Marijuana Tax Cash Fund, State Public School Fund, and local governments. The adult-use excise tax goes directly into the BEST (Building Excellent Schools Today) Fund.

Some of the state’s cannabis tax revenue funds went toward a variety of programs such as substance use disorder services ($16.6 million), affordable housing construction grants and loans ($15.3 million), school health and professionals grant program ($15 million), mental health services ($6.1 million), black market cannabis interdiction/state toxicology lab ($4.4 million), pesticide control and regulation ($1.2 million), marijuana impaired driving campaign ($1.1 million), and school bullying prevention and education ($1 million).

“Taking into account the statutory distributions and the MCTF [Marijuana Tax Revenue and Education] appropriations, K-12 education received about 37 percent of total spending from marijuana revenue for school funding and school construction,” the analysis states. “The Department of Human Services received about 20% for a variety of programs, including those focused on behavioral health and addiction.”

The distribution of cannabis tax revenue was divided among the Department of Human Services ($57.5  million), school construction ($55.9 million), school funding ($52.4 million), general fund ($30.7 million), Department of Public Health and Environment ($23.6 million), local governments ($21.9 million), Department of Local Affairs ($17.5 million), Department of Higher Education ($11 million), Department of Public Safety ($7.6 million), and “other” ($14.1 million) which includes a variety of smaller departments.

While FY 2020-2021 yielded a record high of $425 million, FY 2021-2022 decreased slightly to $366 million, followed by FY 2022-2023 at $282 million.

A report released by the Tax Policy Center in September 2022 noted both Colorado and Washington cannabis sales generated more tax revenue than alcohol or cigarettes in FY 2022. 

Similar reports, such as one published by the Arizona Dispensaries Association in March 2022, showed that cannabis tax revenue reached $6.3 million, which is more than the combination of tobacco ($1.7 million) and alcohol ($2.7 million) for that month.

The California Governor’s Office of Business and Economic Development (GO-Biz) awards cannabis tax funds to a variety of approved organizations. The most recent annual awards contained more than $50 million from FY 2022-2023 split between 31 organizations, from government agencies to youth organizations. In FY 2020-2021, GO-Biz split $29.1 million between 16 awardees, and in FY 2021-2022, GO-Biz awarded $30 million to 58 chosen recipients. The state recently opened up a new grant application window between Aug. 14-Sept. 18, with chosen organizations to be announced sometime in spring 2024.

A report from Whitney Economics in May showed that the legal cannabis industry paid more than $1.8 billion in taxes in 2022. However, the chief economist at Whitney Economics stated that these taxes, which are driving many cannabis business owners into strife, are on the “brink of systemic collapse.”

The post New Report Shows Colorado Cannabis Tax Revenue Exceeds Tobacco, Alcohol appeared first on High Times.

The post New Report Shows Colorado Cannabis Tax Revenue Exceeds Tobacco, Alcohol appeared first on Paradise Found.

The United States Postal Service (USPS) released the details of its final rule on the shipment of nicotine devices, which also includes cannabis vape devices, immediately prohibiting them from being shipped through USPS mail services.

The USPS announced on October 20 that starting today, it will no longer allow the shipment of nicotine vape pens, which also applies to vape pens that contain hemp, CBD or cannabis. This final ruling is a verdict that has been a work in progress since earlier this year. The USPS announced in April 2021 that it was seeking to alter its rules to prevent the shipment of vape pens, in conjunction with a congressional bill provision passed in December 2020. The goal of the bill, referred to as the Preventing Online Sales of E-Cigarettes to Children Act (POSECCA), is to prevent vaping devices from getting into the possession of minors and to decrease lung damage caused by vapes. However, due to the language of the bill, cannabis is included in this as well.

In a Federal Register article entitled “Treatment of E-Cigarettes in the Mail” published on October 21, the agency points out that the word “substances” applies to more than nicotine. “As discussed further in section III.D.1.i, notwithstanding Congress’s use of ‘nicotine’ in the term ‘electronic nicotine delivery systems,’ the plain language of the POSECCA definition makes clear that nonmailable ENDS products include those containing or used with not only nicotine, but also ‘flavor[ ] or any other substance,’” the article states. “It goes without saying that marijuana, hemp, and their derivatives are substances. Hence, to the extent that they may be delivered to an inhaling user through an aerosolized solution, they and the related delivery systems, parts, components, liquids, and accessories clearly fall within the POSECCA’s scope.”

The USPS invited the public to comment on this topic, in which the article states that 15,700 comments were submitted. There were many arguments presented that the final rule should not restrict cannabis products, however the agency directly addresses these concerns regarding why its inclusion of cannabis as an electronic nicotine delivery systems, or “ENDS product,” is necessary. “Thus, ENDS products containing or used with THC (e.g., THC-containing liquids, cannabis waxes, dry cannabis herbal matter) are already nonmailable under the CSA. Congress’s decision to keep such items out of the Federal postal network does not bear on whether their use or exchange violates State or local law. Nor does it alter whether the Department of Justice—a Federal entity independent of the Postal Service—may use its appropriated funds to interfere with the operation of State or local laws.”

The USPS does note that shipping hemp that contains less than 0.3 percent THC is still federally legal, so long as it is not included in a vaping product. The agency also notes that there are other exclusions to this new rule:

• Intra-Alaska and Intra-Hawaii Mailings: Intrastate shipments within Alaska or Hawaii;
• Business/Regulatory Purposes: Shipments between verified and authorized tobacco-industry businesses for business purposes, or between such businesses and federal or state agencies for regulatory purposes;
• Certain Individuals: Lightweight, noncommercial shipments by adult individuals, limited to 10 shipments per 30-day period;
• Consumer Testing: Limited shipments of cigarettes sent by verified and authorized manufacturers to adult smokers for consumer testing purposes; and
• Public Health: Limited shipments of cigarettes by federal agencies for public health purposes under similar rules applied to manufacturers conducting consumer testing.

One commenter questioned the enforceability of this new rule, suggesting that vendors might send products below the weight threshold to avoid detection. USPS replied that the commenter’s assumptions on this matter were false. “First, there is no weight threshold for Postal Service enforcement of mailability; the Postal Service can and does enforce mailability laws regardless of weight, shape, or other mailpiece characteristics,” the article states. “Second, a vendor that does not advertise its sales is unlikely to remain a vendor for long. Third, the presence of identifying markings is not a prerequisite for detection of nonmailable matter; indeed, few shippers of the substantial quantities of nonmailable contraband detected by the Postal Inspection Service and its Federal law-enforcement partners transparently indicate the illicit contents that they are shipping.”

The post USPS Bans Nicotine and Cannabis Devices from Being Shipped Through Mail appeared first on High Times.

The post USPS Bans Nicotine and Cannabis Devices from Being Shipped Through Mail appeared first on Paradise Found.