Colorado Cuts Marijuana Tax To 8%

[Boyd Crowder]

Colorado is leading again, this time with a permanent tax break on recreational marijuana. The state is lowering the tax from 10% to 8% effective in July 2017, a move that could cut into Colorado’s black market. Colorado was the first state to legalize marijuana for recreational use, and now it’s passed a marijuana tax relief. There is even a one-time tax holiday on September 16, 2015, from the 10% state sales tax.

Gov. John Hickenlooper signed the provisions into law, noting that this should lower the price of legal cannabis. A voter initiative is set too. The question for voters is whether Colorado can keep the estimated $58 million in pot taxes collected this fiscal year. Colorado’s Taxpayer’s Bill of Rights—TABOR—requires the state to issue refunds to taxpayers if the state’s spending or revenue collections exceed the previous projections. To try to avoid the refund requirement, legislators introduced HB 15-1367, creating a ballot initiative to allow Colorado voters to approve of the state keeping the $58 million in marijuana revenue.


An unidentified pot reveler carries a modified version of the state flag of Colorado during activities on the unofficial marijuana holiday Monday, April 20, 2015, in Denver. A mass lighting marked the end of multiple days of festivities in Colorado. (AP Photo/David Zalubowski)

Regardless of whether the ballot initiative passes, Colorado did lower the sales tax on marijuana from 10% to 8% beginning July 2017. Eliminating the sales tax for just September 16, 2015 meets constitutional obligations. But even that one day tax hiatus has a price. The tax holiday is expected to cost about $100,000, plus $3.6 million for a one-day elimination of the 15% excise tax.


More:http://www.forbes.com/sites/robertw...argets-black-market-while-oregon-eyes-20-tax/

 

[TNTBudSticker]

The money doesn't need to be split.

Just open up the First marijuana Bank in the usa.With 53$ Million Dollars yearly then we can have a mini-amsterdam redevelopement money city.Condos and Canals and people happy and music and pot.It'll pay for itself in no time.Start small.

Do not touch this money!...it is written into law that it's suppose to go to taxpayers.
Now vote ? Vote for a New MJ Bank with smart people like me....lol

 

[BOMBAYCAT]

CO has funny tax laws. Something called the "Doug Bruce Amendment" will not allow ANY new tax without a vote of the people. Good luck with that. Anyway for the first year they have to give back any overage of tax money. Just for the first year though. The first year they just made up a number that the tax would bring in so they have to give the excess back to the people. There is also a tax holiday for rec. on some 1 day in September. The politicos are going nuts about not having money to spend and they are calling everything a fee so it doesn't fall under the tax amendment. Recreational has a 15% excise tax for just cutting down the plant. After that there are various state, city, local sales tax. The 10% going to 8% is the state sales tax. MMJ only has a tax rate of about 3% so I kept my MMJ license because I didn't want to give the politicos so much money. They are going the right way to decrease the black market, but there is still a lot of spread between MMJ and REC. I'm glad I grow my own and also get the new flavors from the MMJ dispensary.

 

[Jhhnn]

Well, I hope that the ballot initiative passes, otherwise cannabis users end up putting money in straight people's pockets via tax rebate. That's not really fair, nor is it why we agreed to pay sin taxes.

 

[aridbud]

There will always be a black market. However 2% drop in taxes to state....can be advantageous for the consumer.

 

[z-ro]

Sounds like someone is afraid they're going to loose business to California come 2017.... Why not do it now? Is 2% out of 30 really supposed to make a difference? Colorado is the laughing stock not the industry leader lol.

 

[trichrider]

Colorado is leading again, this time with a permanent tax break on recreational marijuana. The state is lowering the tax from 10% to 8% effective in July 2017, a move that could cut into Colorado’s black market. Colorado was the first state to legalize marijuana for recreational use, and now it’s passed a marijuana tax relief. There is even a one-time tax holiday on September 16, 2015, from the 10% state sales tax.

Gov. John Hickenlooper signed the provisions into law, noting that this should lower the price of legal cannabis. A voter initiative is set too. The question for voters is whether Colorado can keep the estimated $58 million in pot taxes collected this fiscal year. Colorado’s Taxpayer’s Bill of Rights—TABOR—requires the state to issue refunds to taxpayers if the state’s spending or revenue collections exceed the previous projections. To try to avoid the refund requirement, legislators introduced HB 15-1367, creating a ballot initiative to allow Colorado voters to approve of the state keeping the $58 million in marijuana revenue.


An unidentified pot reveler carries a modified version of the state flag of Colorado during activities on the unofficial marijuana holiday Monday, April 20, 2015, in Denver. A mass lighting marked the end of multiple days of festivities in Colorado. (AP Photo/David Zalubowski)

Regardless of whether the ballot initiative passes, Colorado did lower the sales tax on marijuana from 10% to 8% beginning July 2017. Eliminating the sales tax for just September 16, 2015 meets constitutional obligations. But even that one day tax hiatus has a price. The tax holiday is expected to cost about $100,000, plus $3.6 million for a one-day elimination of the 15% excise tax.


More:http://www.forbes.com/sites/robertw...argets-black-market-while-oregon-eyes-20-tax/

all they(legislators) need do is raise their projections and they keep it all.

 

[MJPassion]

2%...
Whoa... That's a huge cut!!!

But in all seriousness...
Why are producers being taxed at a higher rate than consumers?

That alone will defer production to the black market!
Consumers generally don't care where their product comes from as long as it's convenient to access.

Far as that $58mil...
Give it back to the people... That's a part of the incentive for passing the laws in the first place.
Government needs to shrink not increase in size!

 

[BOMBAYCAT]

It is a money thing I guess. The tradeoff for legal weed is a high tax rate. Maybe they will come to their senses some day. They legalized weed and nothing happened except the crime rate went down. The tax rate is obscene. A 15% excise tax to the state when the producer cuts the weed down. A now 8% sales tax rate for the state. Whatever the local towns decide to charge for sales tax. They are starting to fight about taxes between unincorporated areas of the counties and the cities within the county. Everyone wants the tax money.