Colorado Marijuana Legalization
On the first of the year the Colorado Marijuana Legalization came into effect and the very first recreational marijuana shops opened their doors to the public. January 1st was quite a party with activists and politicians all lobbying to get attention on the day that first legal pot shops opened their doors. It didn’t take long before hoards of people were wrapped around the block waiting to get into the doors. People from all over the globe and states were there to purchase legal marijuana from a shop. There was a high price to be a part of drug legislation history however, because legal marijuana is not cheap.
According to the terms of the Colorado Marijuana Legalization, there are certain taxes that to be figured into the price of marijuana sales just like there are high taxes placed on both alcohol and tobacco. State and local taxes in the Denver area add up to about 29% on all pot sale and that means that one eight of marijuana at most shops is going to cost anywhere from $50 to $60 which in an ironic twist is almost double what someone would pay if they had a medical prescription. It ironically is also much more than what pot goes for on the street on average.
Still, it would appear that business is great for the marijuana shops as they are estimated to have made about one million on their first day. The figure sounds great, but a closer look into the costs of running a marijuana dispensary make the million sound like chump change in the long run. This is because for as much as the dispensary is making, it is also losing. The terms of the Colorado Marijuana Legalization only allow dispensaries that have already been licensed to sell medical marijuana to sell on the recreational market for the initial nine months that the market is open.
A close look at one of these shops reveals that there are a lot of second hand damages being forced on sellers even though Colorado Marijuana Legalization has been passed. First off, it’s hard to keep managers and crops growing, because marijuana is not an art that most people are skilled at, or at least willing to admit they are skilled at. Second, the steps they have to take to be in compliance with state law are very costly. Third, he is facing an IRS audit and expects to be audited every year costing high legal fees. Finally, the IRS does not allow any business that deals with controlled substances to deduct any business expenses, so they are faced to put profits back into the business or lose a high percentage during tax season.