Colorado made $3.5 million in taxes and fees in first month of marijuana sales

In the first month of legal marijuana sales for recreational use in the US state of Colorado $2.9 million of tax and $600,000 more in licensing fees was generated

Washington is set to follow Colorado's example with other states also watching closely

Marijuana sales in Colorado brought in $3.5 million (£2.1 million) in tax revenues and fees in the first month retail pot outlets were allowed.

The figure included $2.9 million in taxes for recreational and medical marijuana in the month of January, and nearly $600,000 in fees, said Colorado's Department of Revenue.

The Rocky Mountain state had legalised marijuana in 2012, but made drug history on January 1 by inaugurating retail sale for recreational use. It levies a 15 per cent excise tax and a 2.9 per cent sales tax.

"The first month of sales for recreational marijuana fell in line with expectations," said tax department chief Barbara Brohl, while cautioning that the size of the industry might take a few months to become clear.

Initial projections had suggested 40 businesses would be up and running on January 1, but in fact only 24 were by then. By the end of January, 59 businesses had filed tax returns.