6 Ways Cannabis Legalization Has Benefited Colorado

Last Updated on Dec 26, 2017

January, 2018 will mark the fifth anniversary since Colorado legalized recreational cannabis use. In just a few short years, the state has enjoyed substantial benefits from passing this historic legislation. To date, only seven other states, Alaska, Oregon, Massachusetts, Nevada, Washington, Maine, California, as well as Washington D.C. have legalized the use of recreational marijuana. Several states which recently legalized cannabis are still working on implementing their new cannabis programs. Unfortunately Maine’s governor, Paul LePage, recently vetoed a bill that would have regulated and initiated their adult-use cannabis industry, citing continued illegality at a federal level. California will begin recreational cannabis sales in the first month of 2018. Below, we’ll explore six ways cannabis legalization in Colorado has been beneficial.

In the wake of legalization victories across the United States, the legal cannabis industry has created an estimated 123,000 full-time jobs. Of these, a staggering 23,407 full-time jobs were created in Colorado. By 2020, New Frontier Data believes the cannabis industry will have created 250,000-300,000 new jobs in the United States alone. This number is based only on the states with legalized cannabis in 2017, and may grow if and when more states legalize in the next few years. The industry currently employs 100,000-150,000 workers, 90,000 of whom come in direct contact with cannabis plants in the cultivation, manufacturing, or other aspects of this growing industry.

An unanticipated benefit of cannabis legalization has been a substantial increase in equity for homeowners. According to Colorado’s Department of Revenue, homes located near dispensaries have enjoyed an average value increase of $27,000. Previously abandoned or un-leasable retail spaces in suburban strip malls now house medical or recreational dispensaries at higher prices than their landlords ever thought possible. The cannabis-driven economic boom has assisted “blighted neighborhoods” and increased property values substantially, with dispensaries outpacing the growth of Starbucks locations in those areas. Arcview Market Research predicts the legal cannabis market may exceed $20 billion in revenue by the year 2021.

Cannabis legislation has allowed for larger tax revenue budgets in Colorado. While Colorado reported $76 million in tax revenues for 2014, this boon has swelled to over $200 million as of last year. Even better, the state is on track to beat that increase again this year.

With over $1.3 billion in sales last year, the state cannabis industry’s momentum does not appear to be slowing down. Beyond benefiting growers, dispensaries, and consumers, this economic growth has further benefited the business community at large. For example, ancillary industries like construction, real estate, and professional services have enjoyed substantial boosts from the cannabis-driven economic boom. In 2017, the economic stimulation attributed to cannabis in Colorado is over $9 billion.

Marijuana arrests in Colorado have fallen by nearly half from 2012 to 2014. This means millions of dollars of savings in time and taxpayer money for the State’s justice system. It has also resulted in a substantial decrease in the incarceration of nonviolent offenders.

In January, 2017, Colorado’s Department of Public Health and Environment officially published an occupational safety guide for the cannabis industry. DPHE’s handbook is a substantial step in the right direction as states begin to oversee workplace and product safety in the absence of Federal Government oversight or guidelines.

As Colorado, California, Washington, and increasing numbers of states continue to reap the benefits of cannabis legalization. States considering a similar path now have models to look to and learn from as they draft their own regulations, continuing to build the momentum toward more widespread legalization.