A Colorado bill, HB 15-1367, would cut its special retail excise tax rate on marijuana from 10 percent to 7 percent. Having come to think that early taxes have proved too high, that makes sense. But what doesn’t make sense to me is the effective date – July 1, 2017. Now is the time the industry needs relief. Twenty-six months from now, prices may be much lower. A lower rate (7 percent) on a lower base (lower prices due to plenty of supply, etc.) just loses revenue. I would think make the rate 7 percent now, and let it bounce back to 10 percent in mid-2017. Or at least wait and see.
Two recent bills make sense to me, with increasing rates year by year: Congressman Blumenauer’s bill, and a Massachusetts House bill.