Colorado panel recommends new marijuana tax

Having worried that Colorado’s Amendment 64 probably tended to undertax marijuana in “Gangs, Ganjapreneurs, or Government: Marijuana Revenue up for Grabs,” 66 State Tax Notes 255-269 (October 22, 2012), online at http://ssrn.com/abstract=2165864, I’m glad to read about a new-starter tax, though the details remain to be seen:

(From Jacob Sullum:) The Denver Post reports that the task force wants marijuana to be heavily taxed. Amendment 64 calls for an excise tax collected at the wholesale level “not to exceed 15 percent prior to January 1, 2017, and at a rate to be determined by the General Assembly thereafter.” The task force says the initial rate should be the full 15 percent and recommends a special tax at the retail level on top of that, in addition to the standard state and local sales taxes. “Though the task force did not endorse a specific amount for the sales tax,” the Post says, “it gave a 25 percent rate as an example.” Both taxes would have to be approved by voters. http://reason.com/blog/2013/03/01/colorado-task-force-favors-heavy-pot-tax

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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