New research from the University of Denver’s Daniels College of Business finds that Colorado Springs would generate $25.4 million in tax revenue and permit fees if they allowed retail marijuana establishments. The Miller Chair of Applied Economics Jack Strauss released his findings today in his paper, “The Economic Impact of Allowing Retail Marijuana Establishments in Colorado Springs.”

“The retail market will further generate an additional 1,320 – 1,762 jobs for the region,” Strauss says. “Thus, the current marijuana restrictions imply the city’s current budgetary difficulties will be resolved by permitting retail marijuana establishments.”

Some key findings from the research:

  • Will create 1,320 to 1,762 jobs in 2018
  • 2017 tax revenue would have generated approximately $13 million
  • 2018 tax revenue will generate approximately $17 million
  • If Colorado Springs passed an additional local marijuana sales tax of 3.5 percent (Denver’s rate), it would generate the following:
    • $5.1 million in additional tax revenue in 2017
    • $6.1 million in additional tax revenue in 2018
  • Licensing fees
    • $2.3 million in additional licensing fees could be collected by Colorado Springs if all 356 licensed medical marijuana establishments were to pay a licensing fee of $7,500

About the author:
Jack Strauss is the Miller Chair of Applied Economics at the Daniels College of Business. His specialty is forecasting and applied economic analysis, and he was director of the Simon Center for Regional Forecasting at Saint Louis University for more than a decade, before arriving at DU in 2013. He has published in the top journals of forecasting, finance and international economics, and has highly cited papers in forecasting stock returns, housing prices and job growth. Strauss has a B.A. of Economics from Johns Hopkins University and a Ph.D. from Duke University. He has been a Fulbright Scholar of Economics in Kiev, Ukraine, and consulted for the Central Banks of Ukraine, Azerbaijan, Egypt, Nepal and Indonesia. Read more.