Skip to content

Longmont Generates Over $200K in Marijuana Tax Revenue in 5 Months

Between January and May 2019, the city of Longmont, CO, generated over $200,000 in tax revenue.

This content was originally published by the Longmont Observer and is licensed under a Creative Commons license.

It has been nearly seven years since the state of Colorado legalized the sale and consumption of marijuana. Yet only in late 2017 did Longmont approve an ordinance allowing retail sales of the product.

Near the start of 2019, pot shops were finally given the “go ahead” to open their doors. Now, visitors to Longmont dispensaries pay a 3.53% city sales tax and a 3% special marijuana tax, in addition to state taxes on cannabis.

Jim Golden, chief financial officer with the City of Longmont, shared the figures for the first five months of 2019. Between January and May 2019, the city sales tax of 3.53% generated $112,443 in revenue. The special marijuana tax of 3% brought in $90,365. That's a total of $202,808 for the city.

Credit: Pixabay

During a phone interview, Golden explained that the city sales tax of 3.53% is being allocated to five departments: 

  • General Fund                                $54,151
  • Public Improvement Fund       $9,556
  • Streets Fund                          $23,890
  • Open Space Fund                    $6,371
  • Public Safety Fund                     $18,475

The General Fund is being used to fund a variety of tax-supported city services, including public safety, parks, and community services including the library, museum, senior services, and youth services. The Public Improvement Fund is utilized for capital projects for city facilities and parks. The other three funds are “earmarked for the purposes noted in the fund titles,” added Golden.

For the special marijuana tax, 50% of the fund is going into the Affordable Housing Fund. The use for the other half will be voted on this year but is likely to be identified and expended on General Fund services.