Why Is Colorado Suspending Marijuana Taxes This Wednesday?

Sept. 16th is hardly the new 4.20 – however for stoners in Colorado their stash will cost significantly less than normal this coming Wednesday.

The deep discount is a direct result of Colorado’s staggering marijuana tax revenue and a strange twist in the states Taxpayer Bill of Rights; one that is forcing Colorado’s politicians into permitting a tax holiday on all recreational pot sales.

According to the Colorado Taxpayer’s Bill of Rights, voter approval is a requirement for any and all new taxes levied against its citizens. Back 2013, twelve months into Colorado’s experiment with legalizing recreational marijuana, the state’s constituents approved of a new 25% tax on marijuana sales. But thanks to a requirement within the Colorado Taxpayer Bill of Rights, any new taxes must be surrendered and repaid if the states overall tax revenue surpasses the estimates provided to the voters.

Why Is Colorado Suspending Marijuana Taxes This Wednesday?

Learn More about Colorado’s Marijuana Taxes

In Colorado, the new recreational marijuana taxes were expected to generate approximately $70 million in fresh revenue for 2014. Despite their best efforts, Colorado only raised $58 million from marijuana related sales. But here’s the twist, because the overall tax revenue for that year exceeded the state’s forecast, Colorado’s politicians faced a conundrum; either ask the voters for permission to keep the cash, and let the taxes revert to zero, or grant a brief one-day tax waiver for all.

Thanks to that interesting little Colorado quirk, dispensaries around the State are preparing for what is predicted to be an elevated day of chronic pot sales this Wednesday.

Thanks to the Colorado Constitution

Because Colorado has a somewhat convoluted tax-and-spending limitation in its state constitution, the state requires that any and all new taxes gain …read more

Source:: Weed Feed