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article imageColorado Lawmakers Approve 25% Marijuana Tax

By Kent Mao     May 9, 2013 in Business
The Colorado legislature passed a number of bills on Wednesday regarding a state-wide system for legal marijuana sales, including House Bill 1318, which levies a 15 percent excise tax and a 10 percent sales tax on all marijuana products.
Under Amendment 64, recreational marijuana has been legal in Colorado since November. However, a regulated system for sales and distribution has yet to be implemented.
For customers, the total levy on marijuana could reach over 30 percent with all local and state sales taxes considered. While some argue that the effective rate is too high, others say that it mirrors tax rates for tobacco and gambling.
Revenue generated from the proposed taxes will go towards public school construction and enforcement of the new marijuana system.
Along with House Bill 1317, which outlines the regulatory framework for legal marijuana, the new measures await Gov. John Hickenlooper's signing off before becoming law.
In the meantime, lawmakers and advocates alike are celebrating the passage of what is likely to be the first regulatory approach to recreational marijuana across the globe.
"The adoption of these bills is a truly historic milestone and brings Colorado one step closer to establishing the world's first legal, regulated, and taxed marijuana market for adults," Mason Tvert, marijuana policy activist, told The Huffington Post.
If the bills are approved, licensed retail stores should be open by January 2014.
More about Marijuana, Colorado, Taxes, marijuana legalization
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