Pot tax holiday = Laughingstock

Colorado’s one-day marijuana tax holiday is a total laughingstock. Marijuana will be exempt from all state excise taxes for one day, September 15. Colorado’s Taxpayer’s Bill of Rights, TABOR, is the reason.  My state is considering a TABOR-like Constitutional amendment.  I’m against it.

TABOR reportedly has a “requirement that the taxes revert to zero” at some point if collections exceeded estimates. (“Think of it as a back-to-school sales tax break, but for stoners.”) Not marijuana taxes, which came in short of estimates, but total state collections. Continue reading Pot tax holiday = Laughingstock

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Colorado’s TABOR

Colorado’s one-day marijuana tax holiday is a total laughingstock.  It’s the flimsiest tax cut imaginable.

TABOR is the reason. More about that soon.

Section 20. The Taxpayer’s Bill of Rights.

(1) General provisions. This section takes effect December 31, 1992 or as stated. Its preferred interpretation shall reasonably restrain most the growth of government. All provisions are self-executing and severable and supersede conflicting state constitutional, state statutory, charter, or other state or local provisions. Other limits on district revenue, spending, and debt may be weakened only by future voter approval. Individual or class action enforcement suits may be filed and shall have the highest civil priority of resolution. Successful plaintiffs are allowed costs and reasonable attorney fees, but a district is not unless a suit against it be ruled frivolous. Continue reading Colorado’s TABOR

280E material

If a new federal excise tax is part of a package containing explicit legalization, objections could arise under decades-old multilateral narcotics treaties that require us to outlaw marijuana. But 280E now is a penalty consistent with illegality of marijuana, so 280E raises revenue but doesn’t violate treaties.

That’s from http://www.huffingtonpost.com/pat-oglesby/marijuana-advertising-the_b_3810341.html, pasted below.  I haven’t heard an argument to the contrary.

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If you search this website for 280E, there’s lots more, including the  Report from Bob Dole’s Finance Committee.  Another piece, on California’s quirky 280E situation, is exclusively licensed, so I provide only a link: http://marijuanalegalization.about.com/od/RelatedIssues/fl/Down-the-Rabbit-Hole-of-Cannabis-Taxation-and-Advertising.htm, and the intro:

California tax law treats cannabis businesses owned by individuals worse than cannabis businesses owned by corporations.  Strange.  Here’s how:  Continue reading 280E material

More tax rates that climb over time

From KRDO in Colorado: “Two marijuana questions will be on the November ballot in Pueblo County.  Pueblo County Commissioners voted Monday to let the voters decide whether to put an excise tax on marijuana grows that send recreational pot to facilities. The tax would increase starting in 2016 by one percent each year for five years.  The revenue from the tax, if approved, would go toward college scholarships and community projects.”

Other phase-ins of rates are mentioned here: Continue reading More tax rates that climb over time