The Government is giving you cheaper weed today! Find out how –
Tax and Regulate Marijuana has the rallying cry of the Cannabis industry since before there was a Cannabis Industry. The 2012 Election was the apogee of the sentiment that Cannabis can and should be taxed heavily and regulated efficiently.
That message along with a savvy campaign pushed Colorado voters to make history by voting for a constitutional amendment to legalize recreational Cannabis, with 55% voting yes on 64.
Fast-forward three years and the results are in; legal Cannabis is a big hit, like bigger than a six-foot bong rip big.
Writing into the language of the bill were three separate taxes that hit every level of the process from Grow to bowl.
If you don’t care about the nitty-gritty you can skip the next paragraph, if you want to see how the sales sausage is made then read on.
An excise tax of 15% that is imposed on the sale of the raw flower and trim products to either a dispensary or marijuana-infused product manufacturer, with those receiving the goods being on the hook for payment. From that point the excise tax is passed forward to the consumer along with a 10% state marijuana tax, as well as the traditional 2.9% Sales tax, combined with the local sales tax from where you are purchasing…
What this has meant for the state is that in 2014 the first full year of legal cannabis sales, the state collected $58 Million in tax revenue from the recreational market, while this number fell short of the projected $70 Million in Tax revenue, it was enough to push the state’s overall Tax revenue above projections and triggered a hotly debated piece of legislation known as the Colorado Taxpayer Bill of Rights or TABOR.
TABOR requires the state to must either ask the taxpayers to keep the surplus, they can also choose to refund the surplus amount to all taxpayers, these refunds are generally less than $100.00 and have occurred six times since TABORs inception. Colorado Voters will decide in November on whether or not to allow the state to keep the 2014 surplus, but in the meantime.
In order to keep within Colorado Law of having a tax balance of zero dollars, a solution was found in granting a one-day State tax holiday. You are still on the hook for the 2.9% state sales tax, but the 10% marijuana tax and 15% excise tax are waived on September 16th, 2015.
So pack your bags, get to Colorado, and book a tour with My 420 Tours to enjoy the weed tax free!