Colorado braces for day of tax-free marijuana | Inquirer News

Colorado braces for day of tax-free marijuana

/ 04:57 PM September 16, 2015

In this photograph taken Saturday, April 25, 2015, an employee loads packets with medicinal marijuana for sale as a contingent of lawmakers, their staffers and a handful of lobbyists toured one of two retail and grow operations for both medical and recreational marijuana in northeast Denver. Colorado's unusual tax law is forcing the state to suspend taxes on recreational marijuana for one day, Sept. 16, during which a 10 percent sales tax and a 15 percent excise tax will not be collected. (AP Photo/David Zalubowski)

In this photograph taken Saturday, April 25, 2015, an employee loads packets with medicinal marijuana for sale as a contingent of lawmakers, their staffers and a handful of lobbyists toured one of two retail and grow operations for both medical and recreational marijuana in northeast Denver. (AP Photo/David Zalubowski)

DENVER — An accounting error in Colorado is paying off for marijuana consumers Wednesday, when a quirk in a state tax law prompts the state to suspend most taxes on recreational pot.

The one-day pot tax holiday means Colorado won’t collect 10 percent sales taxes on pot. The state is also suspending a 15 percent excise tax on marijuana growers.

Article continues after this advertisement

The tax break is happening because Colorado underestimated overall state tax collections last year. Under the state constitution, the accounting error triggers an automatic suspension of any new taxes — in this case, the recreational marijuana taxes voters approved in 2013.

FEATURED STORIES

Retailers are hoping for big crowds, rolling out bargains to attract shoppers. The state had no estimate on how many shoppers might turn out.

The taxes revert to 25 percent on Thursday.

Article continues after this advertisement

Wednesday’s break comes a day after Colorado made final its accounts for the fiscal year that ended in June.

Article continues after this advertisement

The final tax numbers covered the first full fiscal year in which adults over 21 could legally buy both marijuana and alcohol.

Article continues after this advertisement
In this photograph taken Saturday, April 25, 2015, grow lights turn the color of marijuana plants under cultivation to yellow as a contingent of lawmakers, their staffers and a handful of lobbyists toured one of two retail and grow operations for both medical and recreational marijuana in northeast Denver. Colorado's unusual tax law is forcing the state to suspend taxes on recreational marijuana for one day, Sept. 16, during which a 10 percent sales tax and 15 percent excise tax will not be collected. (AP Photo/David Zalubowski)

In this photograph taken Saturday, April 25, 2015, grow lights turn the color of marijuana plants under cultivation to yellow as a contingent of lawmakers, their staffers and a handful of lobbyists toured one of two retail and grow operations for both medical and recreational marijuana in northeast Denver. AP

Alcohol excise tax collections were up 2.4 percent, to about $42 million. Marijuana-specific taxes came in at about $70 million.

The figures don’t include a statewide 2.9 percent sales taxes. In other words, alcohol likely still produces more overall tax money than pot, though the state doesn’t keep data on how much general sales tax comes from alcohol. Recreational pot is taxed much more steeply than alcohol. TVJ

Article continues after this advertisement
In this photograph taken with a fisheye lens Saturday, April 25, 2015, buyers make their purchases at the counter as a contingent of lawmakers, their staffers and a handful of lobbyists tour one of two retail and grow operations for both medical and recreational marijuana in northeast Denver. Colorado's unusual tax law is forcing the state to suspend taxes on recreational marijuana for one day, Sept. 16, during which a 10 percent sales tax and a 15 percent excise tax will not be collected. (AP Photo/David Zalubowski)

In this photograph taken with a fisheye lens Saturday, April 25, 2015, buyers make their purchases at the counter as a contingent of lawmakers, their staffers and a handful of lobbyists tour one of two retail and grow operations for both medical and recreational marijuana in northeast Denver. AP

RELATED STORIES

Colorado gets members-only clubs for legal pot use

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Denver gives out recreational pot sales licenses

TAGS: Colorado, Health, Wellness

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.