One-Day Tax Holiday on Colorado Weed
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The Prime Minister
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Colorado’s unusual tax law is forcing the state to suspend taxes on recreational marijuana for one day.
The sales-tax break on Sept. 16 will shave $20 off the price of a mid-grade ounce of ? in the Denver area, where ounces this summer sell for about $200 before tax.
It’s unusual for a state that has many times rejected sales-tax holidays on things like school supplies, clothing or energy-efficient appliances. Officials say it could cost the state $3 million to $4 million.
“At first I was in disbelief we were doing this,” said Cheri Hackett, who owns Botanacare, a dispensary in the Denver suburb of Northglenn. “Once our lawyer said, ‘No, we really are doing this,’ we started getting ready. We’re thinking there will be huge crowds.”
Hackett is printing signs to alert customers to the holiday and is trying to boost inventory for a one-day crush of business.
Colorado’s Taxpayer’s Bill of Rights requires voter approval for new taxes. In 2013, a year after legalizing recreational ? , voters approved the 25 percent taxes. But the law requires that any new taxes be waived and refunded if overall state collections exceed projections given to voters when they approved the new taxes.
In this case, the ? taxes were projected to raise $70 million in 2014. They actually raised $58 million, but because overall tax collections that year exceeded projections, Colorado must ask voters for permission to keep the money. And to comply with the requirement that the taxes revert to zero, lawmakers settled on a short one-day tax waiver.
thecannabist.co/2015/09/09/colorado-marijuana-tax-one-day-holiday-sept-16/40572/
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The Prime Minister wrote: »
Colorado’s unusual tax law is forcing the state to suspend taxes on recreational marijuana for one day.
The sales-tax break on Sept. 16 will shave $20 off the price of a mid-grade ounce of ? in the Denver area, where ounces this summer sell for about $200 before tax.
It’s unusual for a state that has many times rejected sales-tax holidays on things like school supplies, clothing or energy-efficient appliances. Officials say it could cost the state $3 million to $4 million.
“At first I was in disbelief we were doing this,” said Cheri Hackett, who owns Botanacare, a dispensary in the Denver suburb of Northglenn. “Once our lawyer said, ‘No, we really are doing this,’ we started getting ready. We’re thinking there will be huge crowds.”
Hackett is printing signs to alert customers to the holiday and is trying to boost inventory for a one-day crush of business.
Colorado’s Taxpayer’s Bill of Rights requires voter approval for new taxes. In 2013, a year after legalizing recreational ? , voters approved the 25 percent taxes. But the law requires that any new taxes be waived and refunded if overall state collections exceed projections given to voters when they approved the new taxes.
In this case, the ? taxes were projected to raise $70 million in 2014. They actually raised $58 million, but because overall tax collections that year exceeded projections, Colorado must ask voters for permission to keep the money. And to comply with the requirement that the taxes revert to zero, lawmakers settled on a short one-day tax waiver.
thecannabist.co/2015/09/09/colorado-marijuana-tax-one-day-holiday-sept-16/40572/
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A 25 percent tax on weed. Hilarious!
