Where does all the revenue from marijuana sales go in Denver?

DENVER ( KDVR ) — Over a decade ago, Colorado voters approved Amendment 64 and legalized recreational marijuana. It has been 10 years since Colorado has been selling recreational marijuana, and many voters still wonder where the tax revenue goes.

Since 2014, Colorado has collected nearly $500 million in revenue from of weed, according to the Denver Department of Excise and Licenses . In 2023 alone, cannabis revenue raked in $48.1 million.

Following the legalization of marijuana a decade ago, lawmakers created and passed Senate Bill 14-215, which created the Marijuana Tax Cash Fund for tax revenue collected from the marijuana industry. Those funds would be collected and appropriated to certain state departments.

With the marijuana industry bringing in millions of dollars every year, there is often one lingering question: Where does all that money go?

How marijuana tax money is used in Colorado

According to the Department of Excise and Licenses, 2023 saw a decline in marijuana sales — with revenue down by $8 million, or about 14%. But even with a loss in revenue, millions of dollars were still allocated to different services around the city.

In a new report sent to FOX31 on Tuesday, the Department of Excise and Licenses said the revenue was split among four main categories in the 2024 budget.

According to the city:

• $7.95 million is being spent on homelessness services
• $7.53 million is being spent on affordable housing
• $3.73 million is being contributed to the Herman Malone Fund
• $3.32 million spent on youth education programs

Homelessness services received the most funds. According to the city, the money supports land acquisitions, unit development, housing assistance and supportive housing services. Since 2018, when the tax revenue was increased and allocated to affordable housing, marijuana tax has generated more than $45.5 million for Denver’s Affordable Housing Fund.

Another newer program is the Herman Malone Fund. In 2022, 1% of the marijuana sales tax was allocated to help support businesses in Denver. According to the city, the Herman Malone Fund is a program that aims to expand access to venture capital for “diverse-owned Denver startups.”

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