Pot Shops Open in Colorado: Follow the Money

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Jan. 2 (Bloomberg) –- Bloomberg’s Matt Miller reports on the economics of the marijuana industry in Colorado and where all the tax money will filter to. He speaks to Julie Hyman and Adam Johnson on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

60 million in tax revenue.

Where will the money go?

Met other joins us to talk about this very issue.

Where do the tax proceeds go?

It is fairly complicated.

Wholesale marijuana sales will be taxed at 15%. since most of the vendors grow their own weed, they are getting taxed only at the retail level.

A 10% tax.

Of that money, and the conservative estimates have it at $67 million for the year, 85% goes to the state level and 15% goes to the local.

Getting in the leads a little bit.

The bottom line is it will be split up between going to help build schools, ironically, because most duties get their weed there.

If that is why, it is circular and self fulfilling.

The new york times had a story yesterday and said one of the big concerns was keeping the adult buyers of marijuana, keeping that marijuana from getting into the hands of teenagers, and i always wondered where 16-year-old dudes get hot air they had to i from teenagers.

It will now go the other way around.

So they will be building schools or investing in schools.

Building more infrastructure.

The towns that have dispensaries are ready because they have had medical marijuana for a long time.

No potholes.

So to speak.

They have invested so well in the infrastructure.

It is interesting.

The jobs front is really interesting.

6000 people already employed at dispensaries.

In colorado.

They get about 120 applications a week because this is the licensing for people to work in these stores.

They expect that to go up to about 200. to that point, it is only in several counties in this state so far.

It could be anywhere in this state, but certain towns or counties have opted out, just like -- i am from ohio and i live in a dry town, they just do not sell liquor.

This is the case with colorado.

He will have dry towns and counties.

You will be able to get it in a lot of places.

It is mostly around denver.

350 retail potshots will open.

About three quarters of those were in denver.

Imagine 50 people applied for licenses, but only 24 had gotten all of their paperwork in in time for yesterday.

Maybe they were too high.

Maybe it is a little complicated area we are joking about this, but how much red tape?

It does not really look that complicated.

More red tape and i would expect to have in a free country where you should be able to do whatever you want as long as you're not harming anybody else, but let's deal with it.

It is not really that way in this country.

A lot of red tape and government involvement.

It is not as much as you would expect for something of this magnitude.

We are at the beginning of the end of prohibition on marijuana.

Washington state is next.

You have to expect more progressive states like california to start falling in the future.

When other states see the amount -- california split into six.

Medicinal marijuana is sold in a number of other states.

20. for medicinal purposes, which, a lot of people, i feel like, probably think they have a legitimate need for marijuana.

Because it helps with pain.

What are the profit margins on the legal marijuana?

Despite it being called a weed, isn't it pretty label and -- labor-intensive to grow?

Yes.

Some that i've seen in colorado are very high-tech.

They are really high on energy use.

They are mostly indoor.

At a certain temperature.

Exactly.

But these operations are, for the most part, family operations.

You could expect that to grow.

Supply and demand would be interesting.

You previously had to have a license.

You had to go to some sort of dr.. -- doctor.

Did they run out on the first day?

I have not gotten the tallies in yet.

I could imagine it being a huge problem for a lot of people in colorado.

The most interesting thing will be ski vacations, scan -- centered around going in skiing, but also smoking pot.

People will be hiring tour guides -- guys to take them through this.

A statement was already released , saying you cannot smoke weed.

You cannot smoke on the mound.

Cigarettes and cigars and pipes, nothing.

We are out of time.

This text has been automatically generated. It may not be 100% accurate.

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