Regulated cannabis sales raise $3.8M for Colorado Springs in 2025; fully fund fire academy + more

(Colorado Springs, CO) Colorado Springs’ first year of recreational cannabis sales is already delivering tangible benefits for residents — and millions of dollars for community priorities.

The city collected $3.8 million in tax revenue from legalized recreational cannabis sales during 2025, a notable start for a market that didn’t begin sales until partway through the year ($2.18M from the 5% special city marijuana tax rate, $870K from the city’s 2% sales tax and $326K from the state’s shareback of state marijuana sales tax rate). Revenue from sales directly funds city resources, including public safety, mental health services, and support programs for veterans. Additionally another half a million dollars were generated via the road tax, public safety tax and trails open space and parks tax.

Advocates point to the partial first-year results as a clear example of how legalization can bolster public budgets while replacing illicit activity with transparent, taxed commerce.

”Legal cannabis is contributing significant dollars to personnel, equipment, and services that make our Colorado Springs neighborhoods safer and stronger,” said Tom Scudder, president of the Colorado Springs Cannabis Alliance. “We’re proud that our local businesses are generating revenue that positively impacts our community, especially given the city’s budget crisis.”

One major highlight among the benefits of additional funds: reinstating the city’s fire academy, which was previously canceled due to budget constraints.

“The city would not have been able to fund this year's fire academy without the tax revenue from cannabis sales, plain and simple. These funds covered the cost of training 36 new firefighters this year,” said Councilmember Nancy Henjum. "This is nearly 4 million dollars the city didn't have before and it makes a real difference in our ability to meet our community’s needs."

In addition to funding the fire academy, City leaders also plan to direct revenue from sales toward police technology, the Springs’ Clean and Safe downtown program, and mental health services and PTSD treatment for area veterans. 

These outcomes highlight what legalization advocates have been saying for more than a decade: regulated cannabis markets generate reliable public revenue while creating jobs and neutralizing the harms associated with prohibition. As the local market matures and more consumers transition from illicit sources to licensed dispensaries, advocates believe the city’s cannabis program will continue to grow, delivering economic opportunity and a steady stream of funding for community needs.

Voters approved recreational marijuana sales in 2024 and dispensaries in Colorado Springs began serving adult recreational consumers in April 2025. The voters also implemented a 5% retail marijuana sales tax designated to fund specific priorities related to public safety, mental health services, and support programs for veterans.

The immediate success in Colorado Springs follows a broader statewide trend. Across Colorado, regulated cannabis sales surpassed $1 billion in 2025, producing more than $217 million in state tax and fee revenues that support programs ranging from school construction to public services.

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