co cannabis revenue outweighs alcohol or cigarettes newsletter august 21 2023

CO cannabis revenue outweighs alcohol or cigarettes (Newsletter: August 21, 2023)

For years, the potential of legal cannabis to be a source of revenue has been overlooked – until now. After a successful decade of legalization, the sale of cannabis has grown to rival that of alcohol and cigarettes, far outweighing both in terms of revenue and popularity. The August 21, 2023 Newsletter reveals the impressive sums and points to the continued potential of the legal cannabis industry.

1. A New High: Cannabis Revenue Surpasses Alcohol and Cigarette Sales

A recent study by the Unites States Department of Commerce has revealed that cannabis sales have surpassed those of alcohol and cigarette for the first time. This is a remarkable milestone, demonstrating just how far the industry has come in just a few short years.

To put it into perspective, cannabis sales have tripled since 2018. This is double the amount of growth seen in alcohol and cigarette sales since then. More people are turning to cannabis for a variety of medicinal, recreational and therapeutic needs, leading to unprecedented revenue.

  • Cannabis has become more widely available: Legalization of cannabis in many states, as well as the ease of purchasing medical marijuana, means more people than ever have access to the product.
  • Growing understanding of the benefits of cannabis: As more information is found on the positive effects of cannabis, consumers are becoming more comfortable with using it to meet their needs.
  • Increasing demand for alternative products: People are searching for sober alternatives to traditional smoking and drinking and turning to cannabis for an answer.

2. The Incredible Growth of Cannabis in Colorado

It’s no secret that the cannabis industry has grown exponentially in Colorado – and it doesn’t show any signs of slowing down. From setting record-breaking sales numbers to becoming an economic powerhouse, Colorado has fully embraced the green revolution with open arms. Here are just a few of the impressive statistics surrounding the impressive growth of cannabis in the state.

  • In 2019, the cannabis industry alone contributed over $1 billion in total sales.
  • Colorado has the second-most cannabis dispensaries in the nation with nearly 500 stores.
  • The industry has also created over 18,000 jobs, making it one of the largest employers in the state.

The cannabis industry has blown away expectations in Colorado and its continued success is attracting attention from around the world. The combination of massive economic growth and job creation has made Colorado a powerhouse in the industry, and its impact continues to expand.

3. Successful Taxation Strategies Unlock Profitable Possibilities in the Cannabis Industry

Ensure Regulatory Compliance
The taxation for the cannabis industry can be complicated, with strict requirements for regulatory compliance. Implementing strategies to ensure proper compliance is critical for owners of cannabusinesses. Consider outsourcing the tax filing to a professional – such as a CPA specialising in taxation for the cannabis industry – to ensure that federal and state regulations are being followed. Additionally, keeping track of PAX, GST/HST, custom duties, pensions, and employee contributions and benefits can help with compliance.

Successful Tax Planning
After making sure that all regulatory requirements are being met, it’s time to look into the steps necessary for successful tax planning. Consider the various deductions and credits available to businesses in the cannabis industry. Tax planning should include researching existing incentives and Structuring a strategy to minimize taxes payable, while taking advantage of the deductions and incentives available.

  • Deduction for research and development costs
  • Canadian controlled private corporations deduction
  • Accelerated capital cost allowance

Tax planning is not only important to reduce the amount payable; it can also provide valuable insights into the financial health of a business. A competent tax planner can help you develop strategies that will maximize after-tax cash flow and provide better visibility on the profitability (or loss) of the business.

The growth of cannabis as a legalized industry is just getting started. Revenue from CO cannabis sales has already proven to be higher than that of traditional vices such as alcohol and tobacco. With more regulations to come in the years ahead, the future looks bright for the cannabis industry in Colorado. There may still be some bumps in the road, but one thing is for sure—CO cannabis is here to stay.





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