Colorado
Marijuana Tax |
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Colorado consitution requires a statewide vote in order to
approve any tax increases and the voters were given just
such opportunity on 5 November 2013.
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Voters approved a 25 percent tax on recreational marijuana
purchases to fund
school construction.
Under the new tax law a combined 15% excise and 10%
sales tax will be imposed on recreational sales.
Recreational sales is just one aspect of the
industry. Other
aspects include medical-marijuana-infused product sales,
medical-marijuana-cultivation facilities management and
medical marijuana dispensaries.
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Colorado and Washington last year became the first US States
to legalize marijuana for recreational purposes.
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The city of Denver also plans to tack on an additional 3.5%
city sales tax on marijuana shops.
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Opponents argued the tax rate would benefit black market
sales. They
claimed that it is far and above the tax rates for alcohol.
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The Colorado marijuana industry comprises of small
businesses that run 517 medical-marijuana dispensaries, 138
medical-marijuana-infused products, and 736
medical-marijuana-cultivation facilities.
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Application fees for new recreational-marijuana businesses
start at $500 and licensing fees range from $2,750 to
$14,000.
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By Owen
Daniels
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