Tax-free marijuana
That’s because on September 16th there will be no taxes on marijuana. On that day the state will not charge pot smokers the normal 10 percent sales tax and 15 percent excise tax. We’ll get to the reason — it’s rather complex — but first try and imagine the line-ups. No taxes!
On an ounce of mid-grade weed, which has been selling over the summer in Denver, for example, for about $200, you’d normally pay another $20 in taxes.
Pretty smoking hot savings, no?
Marijuana dispensaries are ordering in extra product and some are planning on extra staff that day. They’re also preparing for long line-ups. “We’re thinking there will be huge crowds,” Cheri Hacket, who owns a Denver area store called Botanacare, told the Associated Press.
The state projects they’ll lose as much as $4 million in taxes on that day, a much larger daily haul than they’d normally get but the numbers are based on allowing that many will buy whether they need to or not.
New Colorado tax law
Now some media have reported this is happening because the state has collected more marijuana taxes than projected and must give some back. But that’s not exactly true, they have actually fallen at least $12 million short of the $70 million they’d projected they’d collect in pot taxes.
However, a new state law requires that some of any new taxes — pot taxes are new — be given back if overall state taxes were higher than projected to be when voters approved the new tax law. The state has chosen a no tax on marijuana day as a manner of complying and giving tax money back to pot consumers.
Pretty smoking hot law, no?
Bottom line is that not only are most U.S. pots smokers zealous of Coloradans for living in one of only four states where you can legally smoke pot, they will now have to be extra jealous because they can get high and save money at the same time.
For one day.
