“It’s even crazier that so many states are still doing it. Tax revenue is just one of many good reasons to replace marijuana prohibition with a system of regulation”. They actually raised $58 million, but because overall tax collections that year exceeded projections, Colorado must ask voters for permission to keep the money.
Advertisement
Here’s how it all fits together. In the past 365 days, marijuana has brought in almost $70 million in taxes, where as alcohol taxes brought in only $42 million.
Colorado legalized cannabis in 2012, and legal sales to adults 21 and older began January 1, 2014. Taxes will still apply for medical marijuana.
The 2.9 percent tax is still standing, as well as local taxes imposed by the county or the city where the dispensary is located. To comply with the requirement taxes revert to zero, lawmakers settled on a one-day tax waiver.
Colorado generated more annual tax revenue from marijuana sales than from alcohol sales in fiscal year 2014-2015, the first time that has happened.
Morgan said he hoped to move up to 100 pounds of marijuana by the end of Wednesday, which would mean $30,000 in savings.
Recreational marijuana users will be able to buy their product without paying sales tax Wednesday. After the permanent implementation of the Taxpayer’s Bill of Rights (TABOR) in 2005 voters must approve new taxes based on a formula based on state spending, collections, and population growth. David Illig of Onawa, Iowa said “I saw online there was some kind of loophole on the taxes, so I had to come buy some”.
The tax holiday happened because of a quirk in the state tax laws.
The decision of waiving the tax for one day had confused the consumers but most of them still took advantage of the sale.
Looking over a small tangle of pot shoppers in his suburban Denver shop, Cullen said the crowds weren’t huge but the tax break would be a big win anyway.
“You would think you’d get a reprieve in this industry”, he said, customers ringing out and eyeballing particular strains around him, with more in the lobby waiting for their number to be called.
Advertisement
However, it’s far too soon to say how marijuana legalization has affected behavior when it comes to consuming intoxicants.
