Recreational marijuana has been legal in Colorado for 3 years now. Last year the marijuana industry in Colorado generated $996 million in revenue. This resulted in around $200 million in tax revenues for the state. While this may seem like a large number, it is really a very small percentage of the state budget. With tobacco, for every $1 in taxes collected there is $10 in costs to the system including healthcare and regulatory costs. Is marijuana producing a better ratio or is the costs of regulating legalized marijuana higher than taxes collected from its sale?
