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Colorado Marijuana Revenue Is Declining As Other States Legalize, But It Still Outpaces Alcohol Taxes, Report Shows

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Marijuana sales tax revenue has steadily declined in Colorado over the past five years as more states have implemented legalization and intoxicating hemp products have grown in popularity, state officials say in a new report. However, cannabis brings in more tax dollars than alcohol or cigarettes.

In a memo to the nonpartisan Legislative Council of the Colorado legislature, staff “wanted to answer common questions about how marijuana industry revenues fit into Colorado’s state budget.” That includes $231.1 million in cannabis collected by the state in fiscal year 2024-25.

Adult marijuana is taxed at three levels in Colorado: a 15 percent excise tax, a 15 percent sales excise tax, and a 2.9 percent general state sales tax. As one of the first states to legalize recreational marijuana, Colorado’s revenue from such sales “grew steadily over the first eight years of legalization, reaching $424.4 million in FY 2020-21.”

After that, however, “revenues fell for the first time in 2021-22, and have declined every year,” the Legislative Council said. “Marijuana tax revenue fell to $231.1 million in FY 2024-25, 45.5 percent below the peak in FY 2020-21.”

It is remarkable notice He says the decline in marijuana tax revenue in recent years “has been largely due to low prices and a drop in demand as other states across the country legalize marijuana, and alternatives like intoxicating hemp become more available.”

Gov. Jared Polis (D), a longtime champion of cannabis reform, noted the potential economic impact of expanding legalization, He hoped states like Texas would continue to stave off the problem by scoffing so Colorado could continue to collect marijuana tourism dollars.

Texas may remain a prohibitionist state, but cannabis is now legal for adults in almost half of US states, a broader shift. has obviously contributed to the decrease in income.

But the new report also says the rise of intoxicating hemp products is diverting tax dollars. Whether the federal ban on such products changes when it takes effect in November remains to be seen.

Even as statewide legalization expanded and consumer demand increased in the hemp market, however, the Legislative Council released data comparing marijuana to other vices, including alcohol and cigarettes.

In fiscal year 2024-25, marijuana sales generated more tax revenue than alcohol ($54.3 million), tobacco products ($68.2 million), nicotine products ($91.6 million) and cigarettes ($213.9 million).

through LCS.

Until then, surveys have consistently found this More and more Americans are choosing marijuana and cannabis-infused drinks over alcohol and cigarettes.

Meanwhile, only in 2025, Colorado saw more than $1 billion in marijuana sales, a milestone the governor announced in December. And while the Legislative Council attributed part of the decline in cannabis sales to the sale of intoxicating hemp products, Polis also said recently. The pending federal ban will “stifle growth and innovation” in the market.


It’s Marijuana Time tracking hundreds of cannabis, psychedelic and drug policy bills in state legislatures and Congress this year. Patreon supporters By pledging at least $25 per month, you’ll get access to our interactive maps, charts and audio calendars so you never miss a development.


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Meanwhile, the governor said that last week his state did not have to join a lawsuit supporting a federal ban on the possession of guns by people who use marijuana that’s now before the US Supreme Court, and he personally opposes the state attorney general’s “legal position on it.”

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CEA Awards handed out at Indoor Ag-Con

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A new tradition in the CEA industry is the annual Gala Luncheon at Indoor Ag-Con, presenting the CEAs — Cultivating Excellence Awards. This year, Jiffy won the Product Innovation award for its gel, and Bright Farms won the Operational Excellence award. The Trainblazer Award was presented to Dr. Gene Fiacomelli, who has dedicated much of his professional and personal life to furthering the cause of growers.

© Eelkje Pulley | MMJDaily.com

© Eelkje Pulley | MMJDaily.com

“These teams are setting the pace for controlled environment agriculture while pushing the boundaries in innovation, operations and product development while proving what’s possible in our industry right now,” said organizers Indoor Ag-Con and Inside Grower Magazine.

The awards program is designed to recognize and celebrate excellence, innovation and leadership in the controlled environment agriculture (CEA) sector, highlighting achievements in three categories: Operational Excellence, Product Innovation and a special Trailblazer Award.

© Eelkje Pulley | MMJDaily.com

Voltiris and Zayndu were nominated for the Product Innovation Award, but Jiffy won for Jiffy Gel, a biodegradable gel-based substrate specifically designed for controlled environment agriculture (CEA).

© Eelkje Pulley | MMJDaily.com

The nominees for the Operational Excellence Award were haven greens and Planet Farms, and Bright Farms ended up winning. In their words: “BrightFarms measures its success through operational expansion and measurable business results.”

© Eelkje Pulley | MMJDaily.com

For the Trailblazer award, there were no nominees, but there was a winner. “In our industry there are those who explore the unexplored, ask the questions that no one else asks and push the boundaries of what is possible,” said the organizers. “The Trailblazer Award recognizes those who are not afraid to challenge the status quo and push research and CEA application into new areas.” And that’s Dr. Gene Fiacomelli. Since the beginning of the 80s, his research interests include the research, design, development and applications of controlled environment plant production systems (greenhouse and growth chamber): crop production systems, nutrient supply systems, environmental control, mechanization and labor productivity.

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Large Dutch greenhouse grower turns energy volatility into opportunity

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Volatility in energy prices continues to affect greenhouse gas producers across Europe, as the growing share of renewable energy and developments in electricity markets lead to stronger and more frequent price increases. For a large Dutch greenhouse grower, this challenge became the starting point for a more flexible and efficient approach to lighting management.

Like many high-intensity greenhouse operations in the Netherlands, the business faced rising electricity costs and major surprises while requiring precise light control to maintain consistent crop quality throughout the year.

To meet these challenges, the manufacturer implemented the Netvion intelligent control system. The solution enables real-time control of light intensity and spectrum without the need to rewire or make major changes to the existing greenhouse infrastructure.

© Netvion

Responding to extreme electricity prices
Electricity prices in the Netherlands have shown considerable volatility in recent years, ranging from negative prices during periods of renewable overproduction to sharp peaks in demand. “Traditional wired lighting systems offer limited flexibility to respond to rapid price changes,” says Sharan Avati with Netvion. “This often results in inefficient energy use and higher operational costs.”

With Netvion’s system, the grower can dynamically adjust lighting levels based on real-time electricity prices. During high price periods, light intensity is reduced to the minimum level required for crop development. When prices are low or negative, lighting levels can be increased to support plant growth, taking advantage of favorable market conditions.

© Netvion

Improve crop yield through clear precision
High-value greenhouse crops require precise control of light intensity at different growth stages. Using Netvion’s multi-channel lighting control, the manufacturer fine-tuned light levels from 30 µmol/m²/s at high prices to 200 µmol/m²/s when energy costs were low.

This level of precision optimized energy consumption while maintaining consistent crop quality. Instead of increasing stem length, the cultivar saw a measurable increase in crop weight, reporting 3-7% heavier crops, depending on crop type and growing conditions.

According to the grower, this improvement was driven by better alignment of light levels to plant needs during favorable energy price windows, without overstressing the crop during high-cost periods.

© Netvion

Fast financial impact through the fast energy manager
The financial impact of the wireless lighting system was very dynamic. With a capacity of 3 MW to connect to the grid (“knip”), the producer uses Netvion to respond quickly to fluctuations in electricity prices.

© Netvion In practice, correcting lighting levels allows growers to recover approximately 20-30% of their total daily energy costs in 15 minutes under extreme market conditions.
Depending on electricity prices, it can be worth up to 1,500 euros received in a single 15-minute window, shares Sharan. “This emphasizes the importance of real-time control speed rather than fixed hourly savings.”

“Combined with the reduced installation and maintenance costs enabled by the wireless infrastructure, the system provided a strong business case and approximately a two-year return on investment, while also reducing cabling, labor requirements and overall system complexity.”

© Netvion

Easy integration into existing greenhouses
Although Netvion is designed to integrate with existing climate control platforms, this manufacturer followed a different approach. Instead of using a standard third-party climate computer, the company developed custom in-house software to handle the control logic and system connections.

Netvion’s open and flexible architecture enabled integration with this custom-built platform, allowing the producer to implement their own advanced control strategies, taking advantage of wireless high-resolution lighting.

Sharan: “For other greenhouse operations using commercial climate control systems, integration can be easier. This case demonstrates that Netvion supports both standard integration and highly customized control environments based on the grower’s operational configuration.”

© Netvion

For more information:
Netvion
+31 613921828
(email protected)
www.netvion.io

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Virginia Lawmakers Approve Marijuana Sales Legalization And Resentencing Bills

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Virginia lawmakers have passed a bill to legalize the sale of marijuana, as well as separate legislation to provide a way to reinstate past cannabis convictions.

On Wednesday, the Appropriations Committee of the Assembly was approved Del. Paul Krizek’s Marijuana Sale Legislation (D) 16-6 in the vote. This is coming About a week after advancing a similar measure through a Senate panel.

The Subcommittee on Transportation and Public Safety advanced the legislation with an amendment earlier in the day on a 5-2 vote.

Krizek’s bill, HB 642, is largely in line with the recommendations the lawmaker released last month. Joint Commission to Oversee the Transition to the Commonwealth Retail Cannabis Market.

Since legalizing cannabis ownership and home cultivation in 2021, Virginia lawmakers have been working to establish a commercial marijuana market– Only for those efforts to stall under former Gov. Glenn Youngkin (R), who twice vetoed measures sent to his desk by the Legislature.

According to the approved measure, the sale of adult cannabis can begin on November 1. That’s a shorter timeframe than the Senate assistant, which calls for sales to begin on Jan. 1, 2027.

Subcommittee on Wednesday taken The alternative version of the bill changes several key details, including adjusting tax rates and reducing the conversion fee that current medical cannabis companies would have to pay to serve the recreational market.

Here are the key details of the Virginia House legalization of marijuana sales legislation as amended:

  • Adults would be able to purchase up to 2.5 ounces of marijuana in a single transaction, or up to an equivalent amount of other cannabis products, as determined by regulators.
  • The Virginia Cannabis Control Authority would oversee licensing and regulation of the new industry. Its board of directors would have the authority to control the possession, sale, transportation, distribution, delivery and testing of marijuana.
  • The sale of marijuana products would be subject to a six percent excise tax, which would be subject to the state’s 5.3 percent retail sales and use tax. Local governments may charge an additional tax of 3.5 percent.
  • The tax revenue would be divided between the costs of administering and enforcing the state’s marijuana system, a new Cannabis Equity Investment Fund, pre-kindergarten programs, substance use disorder prevention and treatment programs, and public health programs such as awareness campaigns designed to prevent drug-impaired driving and discourage underage use.
  • Local governments could not allow marijuana companies to operate in their area.
  • Delivery services would be allowed.
  • Serving sizes would be limited to 10 milligrams of THC, with no more than 100 mg of THC per package.
  • Existing medical cannabis operators could enter the adult-use market if they pay a $5 million license conversion fee.
  • Cannabis businesses should implement peaceful labor agreements with their employees.
  • A legislative committee would direct the addition of local consumer licenses and micro-enterprise cannabis event permits that would allow licensees to hold sales at farmers markets or pop-up locations. The Virginia Alcoholic Beverage Control Authority would also investigate the possibility of involvement in marijuana regulation and enforcement.

In the Senate, SB 542, a measure sponsored by Sen. Lashrecse Aird (D), to legalize the sale of marijuana, passed through the Senate Judiciary Committee last week. However, it changed in that way drew criticism from advocates for changes that would have imposed new penalties on certain cannabis-related activities such as possession by minors and growing marijuana without a license, which can carry the threat of jail time.

A coalition of reform groups has since sent a letter to the Senate Finance Committee, where the measure was passed, asking them to withdraw those amendments.

Just sworn Gov. Abigail Spanberger (D) supports legalizing the sale of marijuana to adults.

Meanwhile, the Senate Finance and Appropriations Committee on Wednesday also approved a bill, SB 62By Sen. Louise Lucas (D), it would create a process to consider changing the sentences under which people incarcerated or under community supervision for certain felonies involving the possession, manufacture, sale or distribution of marijuana could receive an automatic trial.

The jury approved the measure in a 10-4 vote.

On the part of the Assembly, the supplementary version of the revision legislation, HB 26 Del. Rozia Henson (D), advanced it through the Appropriations Committee on a 16-6 vote Wednesday.

Earlier, the Subcommittee on General Government and Capital Expenditures approved the measure in a 3-1 vote.

The bill applies to people with convictions or convictions for conduct that occurred before July 1, 2021, when a state law that legalized personal possession and home cultivation of marijuana went into effect.


It’s Marijuana Time tracking hundreds of cannabis, psychedelic and drug policy bills in state legislatures and Congress this year. Patreon supporters by pledging at least $25/month, you’ll get access to our interactive maps, charts, and audio calendars so you never miss a development.


Learn more about our marijuana bill tracking and become a Patreon supporter to gain access

Separately, the Virginia Senate passed a bill on Tuesday Provide legal protections for hospital staff to facilitate the use of medical marijuana for terminally ill patients in their facilities, as long as cannabis is federally rescheduled.

SB 332 would build on existing state law that protects healthcare professionals in hospices and nursing facilities who help terminally ill patients use medical cannabis treatment. These protections will be extended to hospital workers.

Separately, the Virginia Department of Labor and Industry has published a new determining workplace protections for cannabis users.

Photo by Mike Latimer.

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