Colorado Springs pot taxes trail city forecast

The Springs collected $3.8 million in its first year of legal recreational marijuana sales, according to the Colorado Springs Cannabis Association — an early snapshot ahead of the industry's unofficial holiday, 4/20.

Zoom in: The vast majority — $3.5 million from a 5% sales tax — is earmarked for the police and fire departments, mental health services, and PTSD treatment for veterans.

• "This allows us to maintain our staffing levels and ultimately provide a safer community," Deputy Fire Chief Tim DeLeon told KKTV.

Context: The Springs jumped on the bandwagon in 2024.

• The conservative-leaning city — Colorado's second-largest — stood firm against recreational cannabis sales for a decade, even as the rest of the state embraced legalization.

Yes, but: The city was counting on $4 million annually from its sales tax to help with its $31 million shortfall.

Caveat: Licensed stores in the Springs didn't start selling until May 2025, according to city tax revenue reports, so a true annual average could be higher.

Zoom out: Statewide, marijuana revenue has been dropping from its peak in 2021, due to increased supply and competition from other states.