Today, Wednesday September 16th, is a pot tax holiday across the state of Colorado. This translates into a one-day savings on the 10% sales tax typically applied to cannabis.
Taxes on the plant are being suspended for the day due to the Colorado Taxpayer’s Bill of Rights, which requires that new taxes be refunded or waived if the collections made by the state exceed the projections that were provided to voters when the new taxes were approved.
In addition to the sales tax break, the 15% excise tax applied to growers will also be suspended. The statewide 2.9% sales tax will remain in place.
Cannabis consumers in Colorado carry a heavier tax burden than those that apply to alcohol, which is taxed by volume in addition to sales taxes. The fiscal year numbers that just came in displayed legal weed raising roughly 70 million dollars, with at alcohol roughly 42 million dollars. The Marijuana Policy Project applauded the move by Colorado lawmakers, calling it a “much deserved day off.”
Cannabis storefronts are planning for the holiday accordingly, stocking shelves and putting additional sales in place to celebrate the rather rare occasion. Larger than expected traffic is expected at most shops, so those who plan on taking advantage of the 10% savings on their weed will want to provide themselves with a little extra time to make their purchases.
The taxes will resume their 25% status tomorrow. But if tax revenue continues to outpace projections made by Colorado lawmakers, expect many more of these marijuana tax holidays to crop up.
Stay DOPE.