Colorado's legal marijuana industry generated over $1 billion in sales in 2025 and has brought in over $3 billion in tax and fee revenue since the state became the first to approve recreational sales in 2012. The state touts the industry as a revenue source for schools and a deterrent to cartels, while recent federal policy shifts toward reclassification are applauded by the governor but also raise concerns among critics about public safety and health consequences.

Colorado Governor Touts State’s $1 Billion In Legal Marijuana Sales This Year

Dec 30, 2025

Marijuana Moment

*“Colorado’s world-class marijuana industry drives out criminals and
cartels and is supporting Colorado businesses and jobs while driving
revenue for school construction.”*

*By Elyse Apel, The Center Square*

In 2025, Coloradans spent upwards of $1 billion on legal marijuana. That
generated almost $200 million in tax and fee revenue for the state,
according to monthly data published by the Colorado Department of Revenue.

By the end of the year, the department anticipates Colorado will surpass $1
billion in tax and fee revenue on marijuana sales.

“Colorado’s world-class marijuana industry drives out criminals and cartels
and is supporting Colorado businesses and jobs while driving revenue for
school construction,” Colorado Gov. Jared Polis (D) posted on x.com. “This
important milestone is one that our state can continue to build on.”

Colorado has long been on the forefront of the legalization of marijuana.
In 2012, it was the first state in the United States to approve the sale of
licensed recreational marijuana.

Since then, the state has brought in more than $3 billion dollars in tax
and fee revenue from marijuana, while marijuana sales have topped nearly
$18 billion.

Heralded as a major revenue source for the state, its tax revenue has been
used over the years to help fund infrastructure projects and public schools.

Colorado’s world-class marijuana industry drives out criminals and cartels
and is supporting Colorado businesses and jobs while driving revenue for
school construction. This important milestone is one that our state can
continue to build on. pic.twitter.com/BWvJxscLMG

— Governor Jared Polis (@GovofCO) December 26, 2025

Currently, the state’s sales tax sits at 2.9 percent, the state retail
marijuana sales tax at 15 percent, and the state retail marijuana excise
tax at 15 percent.

Federal policy has been slowly changing to reflect the legalization of
marijuana in the majority of states. Just earlier this month, President
Donald Trump signed an executive order on reclassifying marijuana from a
Schedule I drug to a Schedule III drug. This signals a significant shift in
the federal government’s stance on marijuana.

“Decades of federal drug control policy have neglected marijuana’s medical
uses,” the order said. “The federal government’s long delay in recognizing
the medical use of marijuana does not serve the Americans who report health
benefits from the medical use of marijuana to ease chronic pain and other
various medically recognized ailments.”

Polis applauded this decision, calling it “long overdue.”

“It’s far past time for the federal government to catch up to Colorado and
many other states and get rid of arcane federal policies on cannabis that
aren’t based in reality and hurt Colorado small businesses and public
safety,” he said. “For years Colorado has been a national leader in smart
and safe cannabis policy that has virtually eliminated illegal markets,
ensured safe use, and generated over a billion dollars for education.
Colorado’s cannabis industry is the gold standard ensuring that products
are safe and regulated.”

Not everyone is happy with Trump’s order though, as concerns especially
grow about high-potency THC products.

“The Trump administration has declared a literal war on drugs, saying that
fentanyl is a ‘weapon of mass destruction,’ while at the same time
potentially making marijuana more accessible by loosening federal
restrictions,” Tony Perkins, president of the Family Research Council,
posted in response to the order on x.com. “Colorado, which legalized
marijuana in 2012, has become a case study of the consequences: an increase
in traffic deaths, mental health concerns, and emergency room visits,
workplace safety issues, and a growth in the black market.”

Complete data on Colorado marijuana sales from the year will be available
in February.

*This story was first published by The Center Square.*

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