From gold rush to green rush: Colorado border towns bringing in millions because of retail cannabis
When recreational marijuana was first made available, many thought the taxes that came along with it would be enough to fix schools, roads, and change our state for the better. As we’ve learned that type of money just hasn’t materialized. However, for our smaller towns that border non-recreational states, they are the ones really benefitting from all the money being spent there on retail cannabis.
While things are going well with them now, there is always the fear that it won’t last long.
The small towns of Trinidad, Durango, and Cortez may not be as popular as some of the bigger cities like Colorado Springs or Denver but they are the ones bringing in big money. Millions of dollars from people buying recreational marijuana. So what makes these towns different? Like real estate, it’s all about location and timing. For all three cities, they are right on the other side of the New Mexico border with either a U.S. highway or interstate running through them. Making these old mining towns experience a new type of gold rush.
The three counties those towns reside in bring in the most cannabis sales per capita in Colorado. That’s because people from out of state travel to these towns for retail weed. Ryan Hixson with Faragosi Farms, a dispensary in Trinidad, says it’s the majority of their customer base. “Between 75 to 80 percent of all of our clientele comes from somewhere out of state,” says Hixson. All those travelers pouring through Colorado’s southern border. City leaders say the amount of money being brought in has changed their town.”We’ve done a lot of sprucing up,” says Cortez City Manager John Dougherty. With the money, they have made some much-needed repairs. “Primarily road work but we have also purchased land on the south side of town,” says Dougherty.
Cortez budgets $250,000 of marijuana taxes in their city budget. For Durango, they budget a little bit more at $400,000 also using it mostly for road repair. However, for Trinidad, they are getting the most. The city received an estimated $3 million in 2018. With it, they purchased a variety of items including new golf carts, guns for police cruisers, and a new firetruck. In total, they spent $1.7 million out of the $3 million.
Like the gold rush, the money being poured in isn’t expected to last forever. City leaders said as soon as one of those neighboring states legalize retail marijuana, profits are going to go way down. Dougherty says, “we are going to see a dramatic drain in the tax dollars.” Adding Cortez is expecting their yearly revenue to be cut by more than half. That’s why the majority of what they are spending it on is one time expenditures, so when money does start to run out, no one will lose their job.
The city manager with Trinidad told KRDO they are saving some of the tax revenue so when it does happen, they will be prepared.
The green rush ending. An inevitable reality those towns will have to deal with.
