Colorado converts percentage tax base to weight!
February 5, 2014 § 8 Comments
Unable to figure out a transfer price for a Constitutionally permitted 15 percent wholesale tax when vertical integration forbids the existence of a wholesaler, Colorado has substituted a weight based tax. Wow.
The excise tax is calculated by multiplying the quantity of retail marijuana product by the average market rate at the time, then multiplying by the 15% (excise tax rate). For example: ABC cultivator transfers 3 pounds of flower, 5 pounds of trim and 8 plants to ABC store. At the time of transfer the average market rates are:
$1,876 for Flower
$296 for Trim
$9 per Immature plant
3 lbs. of flower x $1,876 = $5,628
5 lbs. of trim x $296 = $1,480
8 plants x $9 = $72____
$7,180 x .015 = $1,077 in retail marijuana excise tax due
Here is the official document:
CO early methodology for weight late 2013, or http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1251923675647&ssbinary=true