Amendment 64, which changed the state constitution to permit a recreational marijuana industry, also directed the state legislature to enact an excise tax up to 15% with the first $40 million in annual revenue going to public school construction. The Colorado General Assembly has referred a proposed 15% excise tax on marijuana sold by a cultivation facility as well as a 10% sales tax on retail recreational marijuana to fund regulation of marijuana. The excise tax is not expected to garner $40 million for at least 2 years, but the cost of the tax would be passed on to the retail costumer through a higher sale price. The 10% sales tax is in addition to current state and local sales taxes on retail purchases - 8.21% in the city of Boulder.
Cities and counties which allow retail marijuana sales will receive 15% of the revenue from the 10% sales tax. If approved, Prop AA would allow the General Assembly to increase the sales tax up to 15% without a further vote of the electorate. At a later date, the General Assembly may seek voter approval of a higher excise tax effective in 2017.
Regulation costs of recreational marijuana include funding the Marijuana Enforcement Division which oversees testing, tracking and labeling of marijuana. Added costs for health, education and public safety are also cited by proponents of the sales tax.
Recommendation: leaning yes
Although I don’t favor raising money for public school construction from marijuana tax money and there are still issues with marijuana sales being illegal under federal law, if the good citizens of Colorado want to impose big taxes on marijuana, so be it. Opponents say that the high taxes will drive people to a black market, defeating the financial purpose of legalizing marijuana.
The Campaign to Regulate Marijuana Like Alcohol supported Amendment 64, but alcohol doesn’t have a similar special sales tax as proposed in this ballot issue. On the other hand, the state sales tax on cigarettes is 4.2 cents per cigarette.
Website for the Yes side (Committee for Responsible Regulation)
http://www.yesonpropaa.com
Website for the No side (No on Prop AA Campaign)
http://www.NoOverTaxation.org – It seems the site has gone offline.
http://www.colorado420.com/ (Colorado 420 Coalition)
Proposition AA (STATUTORY) Approved Ballot Language
SHALL STATE TAXES BE INCREASED BY $70,000,000 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY IMPOSING AN EXCISE TAX OF 15% WHEN UNPROCESSED RETAIL MARIJUANA IS FIRST SOLD OR TRANSFERRED BY A RETAIL MARIJUANA CULTIVATION FACILITY WITH THE FIRST $40,000,000 OF TAX REVENUES BEING USED FOR PUBLIC SCHOOL CAPITAL CONSTRUCTION AS REQUIRED BY THE STATE CONSTITUTION, AND BY IMPOSING AN ADDITIONAL SALES TAX OF 10% ON THE SALE OF RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS WITH THE TAX REVENUES BEING USED TO FUND THE ENFORCEMENT OF REGULATIONS ON THE RETAIL MARIJUANA INDUSTRY AND OTHER COSTS RELATED TO THE IMPLEMENTATION OF THE USE AND REGULATION OF THE RETAIL MARIJUANA AS APPROVED BY THE VOTERS, WITH THE RATE OF EITHER OR BOTH TAXES BEING ALLOWED TO BE DECREASED OR INCREASED WITHOUT FURTHER VOTER APPROVAL SO LONG AS THE RATE OF EITHER TAX DOES NOT EXCEED 15%, AND WITH THE RESULTING TAX REVENUE BEING ALLOWED TO BE COLLECTED AND SPENT NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW?
- YES/FOR
- NO/AGAINST
Cities and counties which allow retail marijuana sales will receive 15% of the revenue from the 10% sales tax. If approved, Prop AA would allow the General Assembly to increase the sales tax up to 15% without a further vote of the electorate. At a later date, the General Assembly may seek voter approval of a higher excise tax effective in 2017.
Regulation costs of recreational marijuana include funding the Marijuana Enforcement Division which oversees testing, tracking and labeling of marijuana. Added costs for health, education and public safety are also cited by proponents of the sales tax.
Recommendation: leaning yes
Although I don’t favor raising money for public school construction from marijuana tax money and there are still issues with marijuana sales being illegal under federal law, if the good citizens of Colorado want to impose big taxes on marijuana, so be it. Opponents say that the high taxes will drive people to a black market, defeating the financial purpose of legalizing marijuana.
The Campaign to Regulate Marijuana Like Alcohol supported Amendment 64, but alcohol doesn’t have a similar special sales tax as proposed in this ballot issue. On the other hand, the state sales tax on cigarettes is 4.2 cents per cigarette.
Website for the Yes side (Committee for Responsible Regulation)
http://www.yesonpropaa.com
Website for the No side (No on Prop AA Campaign)
http://www.NoOverTaxation.org – It seems the site has gone offline.
http://www.colorado420.com/ (Colorado 420 Coalition)
Proposition AA (STATUTORY) Approved Ballot Language
SHALL STATE TAXES BE INCREASED BY $70,000,000 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY IMPOSING AN EXCISE TAX OF 15% WHEN UNPROCESSED RETAIL MARIJUANA IS FIRST SOLD OR TRANSFERRED BY A RETAIL MARIJUANA CULTIVATION FACILITY WITH THE FIRST $40,000,000 OF TAX REVENUES BEING USED FOR PUBLIC SCHOOL CAPITAL CONSTRUCTION AS REQUIRED BY THE STATE CONSTITUTION, AND BY IMPOSING AN ADDITIONAL SALES TAX OF 10% ON THE SALE OF RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS WITH THE TAX REVENUES BEING USED TO FUND THE ENFORCEMENT OF REGULATIONS ON THE RETAIL MARIJUANA INDUSTRY AND OTHER COSTS RELATED TO THE IMPLEMENTATION OF THE USE AND REGULATION OF THE RETAIL MARIJUANA AS APPROVED BY THE VOTERS, WITH THE RATE OF EITHER OR BOTH TAXES BEING ALLOWED TO BE DECREASED OR INCREASED WITHOUT FURTHER VOTER APPROVAL SO LONG AS THE RATE OF EITHER TAX DOES NOT EXCEED 15%, AND WITH THE RESULTING TAX REVENUE BEING ALLOWED TO BE COLLECTED AND SPENT NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW?
- YES/FOR
- NO/AGAINST
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