Denver, Colorado, has marked a significant milestone in the first decade of legal marijuana sales, with city officials detailing how cannabis tax revenue has been used to fund critical public services. The city’s latest report reveals that since the first adult-use retailers opened in 2014, following a 2012 statewide reform initiative, hundreds of millions of dollars have been distributed to various public initiatives, significantly impacting the community.
In 2023 alone, the city allocated substantial funds to homelessness services ($7.95 million) and affordable housing ($7.53 million), reflecting the ongoing commitment to address these pressing social issues. Additionally, other key areas of investment included education ($3.32 million), regulatory efforts ($2.36 million), and enforcement ($2.14 million). The Malone Fund, aimed at youth violence prevention, received $3.74 million, showcasing the broad reach of marijuana tax revenue in supporting Denver’s public services.
Despite a recent downturn in cannabis sales and associated tax revenue, which has declined for the second consecutive year, the report highlights a positive trend: a significant reduction in illicit cannabis activity. Cannabis related offenses have plummeted to just 0.2 percent of all crimes in 2023, with law enforcement seizures of illicit marijuana dropping dramatically from 9,504 pounds in 2014 to just 266 pounds last year. This decline underscores the effectiveness of the regulated market in curbing illegal activities.
The report also noted a decrease in burglaries targeting cannabis businesses, from 156 in 2022 to 98 in 2023. This improvement is partly attributed to regulatory measures introduced in 2021 that mandated secure overnight storage of marijuana and cash, enhancing the security of these businesses.
As Denver moves into the second decade of legalization, Mayor Mike Johnston expressed pride in the city’s leadership role in marijuana regulation. He emphasized that Denver stands ready to share its lessons and recommendations with federal lawmakers, who are increasingly considering proposals for national legalization, decriminalization, and rescheduling of marijuana.
The report does, however, acknowledge the challenges facing the cannabis industry in Denver, particularly the decline in revenue from cannabis taxes and licensing fees. In 2023, the city collected $48.1 million, down from a peak of $72.6 million in 2021. Additionally, the number of cannabis licenses decreased by 7 percent from January 2023 to January 2024, with medical marijuana licenses experiencing the most significant drop of 12 percent, a decline attributed to the lowest medical marijuana sales since 2011.
Overall, Denver’s experience with legalization of marijuana over the past decade has provided valuable insights into the benefits and challenges of regulated cannabis sales. The city has not only managed to generate substantial revenue but also successfully reduced illicit activities, setting a precedent for other regions and potentially influencing future federal policies on cannabis.
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