Since Colorado legalised dagga in 2014 it has raked in more than R6.5 billion (US$506 million) in taxes, according to a VS Strategies report.
According to the Colorado Department of Revenue, the state received R1.2 billion (US$95 million) in taxes up to May this year alone.
Colorado has a population of 5.5 million people.
More than half of dagga tax (51.3%) has gone to education and the construction of schools while 14.2% has been ploughed into substance abuse prevention and treatment.
Local municipalities are using their share of the additional revenues in numerous ways such as providing university scholarships, fighting homelessness, fixing potholes and sidewalks, and funding the construction of municipal buildings.