Budget and expenditures

In recent years as more cities in Colorado have opted in to allow marijuana sales, Denver marijuana sales (retail and medical) have made up a diminishing portion of Colorado's overall marijuana sales (retail and medical) though the decrease slowed last year.

Sales totals in Denver could be impacted by more cities and states across the United States adopting marijuana legalization, possibly resulting in less people coming to Denver to purchase marijuana.

Includes funds allocated to Excise and Licenses, Community Planning and Development, Department of Public Health and Environment and Denver Fire Department to support marijuana policy development, process and issue marijuana licenses and inspect marijuana facilities to ensure safety and compliance with all existing regulations. Funds also support the Department of Finance to oversee city tax compliance.

Includes funds allocated to the Denver Police Department, Parks and Recreation and the City Attorney's Office to enforce the City's marijuana-related ordinances and policies and to limit elicit market marijuana activities.

Includes funds allocated to Parks and Recreation and Children's Affairs for programs to encourage healthy lifestyles for children. Also includes funds for the executive director of Safety for drug education and diversion programs and activities.

Marijuana taxes have an impact in the push for more affordable housing in the City and County of Denver. In 2018, City Council increased the special sales tax for retail marijuana from 3.5% to 5.5%. This 2% increase dedicated marijuana tax revenue to affordable housing programs.

Effective late 2018, the Affordable Housing Fund is administered by the Department of Housing Stability and supports land acquisitions, unit development and production, housing assistance and supportive housing services.

Detailed tax amount information for each year is available on the Marijuana Revenue dashboard.

Starting in 2022, 1% of the existing special retail marijuana sales tax, up to $50 million, is allocated to an investment fund to support businesses that have traditionally lacked access to capital and other resources for growth. The Fund focuses on strengthening Denver's economic diversity while providing quality job opportunities, ensuring a pipeline of entrepreneurs and small business startups, and creating generational wealth for Denver's business owners who have historically lacked investment opportunities.

These funds support shelter operations and services for the 48th Street facility, including expanding operations to 24/7, and the Early Intervention Team (EIT), which provides encampment outreach, referral, and support services for individuals experiencing homelessness. Any budget required to maintain these services beyond the amount reflected in this document will be supported by the General Fund.

The authorizing ordinance for the special tax rate for retail marijuana also allows these funds to be used for operating and improving the city. Based upon the projected recreational marijuana revenue, and the expenditures reflected above, there was no additional capacity available for these services within the special tax revenue projection in 2024.