Colorado has become, for the most part, the world capital of marijuana. With over 600 dispensaries in Denver alone, you have more access to marijuana than to a cup of Starbucks coffee.
In the first year of recreational marijuana sales, Colorado has raked in an impressive $50 million in tax revenue. While each municipality has the right to regulate taxation within their own jurisdiction, the state is limited on the amount of revenue it can generate through taxes before it has to return some of the excess money collected to its constituents.
For once, both Democrats and Republicans in the Colorado congress agree. Although the provisions of the 1992 Colorado Tax Payers Bill of Rights requires tax money collected in excess as determined by a formula to be returned to the citizens, both parties are looking for a way to keep the money. Under the 1992 law, the excess money collected through marijuana sales could total as much as $30 million. In the past, Colorado has issued six refunds under this law, for a total of over 2.2 billion dollars. Some in congress believe that marijuana is different from other tax generating sources and that the money collected should stay in the hands of the government and use to pay for education and other programs. The problem is that under the current legislation, marijuana falls under the 1992 law without distinction. Law makers are considering taking the issue to the polls and allowing the citizens of the state to vote on an exception for marijuana which will allow the State to keep excess funds or change the formulation of how tax revenue is generated from marijuana.
There are conflicting points of view over this issue. Some believe that the taxes on recreational marijuana are too high, with the City of Aurora being one of the highest in the State at 30%. Others believe that the higher tax rates are a small price to pay considering that marijuana is still federally illegal. Due to the overwhelming demand for product in Colorado, some dispensaries are able to boost production to levels which makes buying marijuana at low cost possible. An ounce of premium marijuana can fetch as much as $400 on the black market around the country, while in Colorado, that same ounce can be purchased legally for around $100. The great difference in price between legal and black market sales, would lead one to believe that regardless of the tax rate placed upon it, marijuana would still come out at a fraction of the cost of illicit sales.
If the legislature decides to refund the excess money from pot sales, the problem lies in how do they determine who gets the money? Should the money be returned to all residents of Colorado or just those who purchase marijuana? Some on the hill aren’t concerning themselves with this question as they believe it is a stretch to think that this money would ever make its way back into the hand of Coloradoans. The voters of the State have approved the taxing of marijuana on two separate occasions and some law makers are confident that they will again vote in favor of using the excess tax money for other communal purposes. While this issue is the talk of the town in downtown Denver, it has little impact on the buying habits of the average Colorado marijuana consumer who seem to be content with the increasing quality and plummeting price of cannabis.
I won’t be satisfied till it becomes more common than eating a McDonald cheese burger.
agreed.
they just slapped around smokers so you have to hide to smoke, but smoking dope out in the open is alright, yeah ok, Colorado is this what you want to be knowen for, do you know who & what is going to be hanging around your state from now on, are you ready for what happens next with cartels ??? you have just destroyed your state, your greed for money has made a third-world country of your state, hope your proud
Educate yourself before making grammatically incorrect statements. Your comment is undeserving and unfounded.
You’re a dumb ass
Umm, just saying, but as a result of this legalization of medical and recreational marijuana use, cartel activity has slowed down tremendously because the weed grown in America is way better than that in Mexico, it’s a state, not a city state. if you’re going to insult it at least do it correctly, and it’s not being greedy it’s called increasing state tax to boost overall state revenue that’s circulating throughout the state and slowly build the states wealth, thus benefiting the people of the state, which leads to a decrease in homeless and produces and influx of new job opportunities
I think he is a cartel distributor who’s just pissed off he has to find another job LOL.
I think legalization is an good incentive for cartels to go legit. That might be bad for society, maybe the cartels will grow and take over Wall Street, but then again maybe that already happened after end of alcohol prohibition.
Marijuana is legal there, so it is in the free market. You don’t see cartels for apples, socks, or tables, because cartels that promote danger and violence only exist with dealing illegal items. I hope you’ve learned something.
Cartels? If anything, this is HURTING the cartels who no longer have a federally protected “black” market. Ignoring what the DEA says, every other source says that the cartels are seriously being hurt by this. Even the cartel farms in Mexico are starting to drop this crop; they just can’t make the $$$ anymore. Colorado should be proud, it’s working.
You, on the other hand…I think your a cartel stooge, or an illegal dealer who’s mad that their business has disappeared. The same type of dealer who defeated the Cali prop.
http://www.washingtonpost.com/world/tracing-the-us-heroin-surge-back-south-of-the-border-as-mexican-cannabis-output-falls/2014/04/06/58dfc590-2123-4cc6-b664-1e5948960576_story.html
Wow Thomas vosburg…. You just made yourself known as a straight idiot. Now how do you feel?
Personally, I’d say use the money to help the homeless in Colorado.
@thomas vosburg. Please explain with more detail. This ignorance is great when trying to understand the mindset behind the anti marijuana campaign. We are past the uninformed generation and are left with people, like yourself, who will fight with no regard to science or any logical reasoning. Keep preaching your “anti weed” ignorance, but when your laying in a hospital room dealing with cancer, lupus, MS, ( I think that’s enough examples ) and you can’t eat or sleep with constant nausea and pain, we will give you oxycotton and watch you wither away.
AMEN!!
ReverendLucifer: Denver takes better care of their homeless than many, many, other large cities. Colorado Springs, which is filled with “Christians”, banned them from camping within the city limits and were fining them for doing so. Smart huh? Fine a homeless person?
Thomas Vosburg:Get ready for the future, because eventually it will be legal in all states, and you’re stupidity about the remark regarding cartels reveals your ignorance. I agree with Pamela, educate yourself because you have no clue what you’re talking about and I live in Colorado. We’re doing just fine, thanks for your concern.
The money SHOULD be kept by the state, but it should be split 50/50 on going to schools amd developing a public renewable energy infrastructure.
Wasn’t the federal ban on Marijuana just lifted?
Prices haven’t gone down in the shops, they have gone way up (at least in my experience here in Denver). With the taxes and retail mark up they are basically selling at twice street value. Even though I am a smoker I voted against legalization because in some cases it actually led to stricter penalties for smoking, even if you are over 21. I think the first $49 million raised in taxes went to Colorado public schools which I am in favor of (I think thats how it was explained on the Tax initiative on the voting ballot). In my opinion the biggest benefit of the legalization has been the boom in the home growing market. There are tons of people here that either match or exceed dispensary quality with the added benefit of being able to control what is put in your product.
The more involved larger corporations become in the marijuana industry the product will become compromised by additives and preservatives.
I personally have no problem with Colorado keeping the excess taxes but I would like to see that money go into research for more medical (like controlling tourettes and seizures so they could become a more viable, accessible, and safer option for those looking for alternative treatment. I know a 10 year old kid who was stuggling with tourettes and was prescribed a cannabis pill once every 3 days, it didnt have any psychoactive effects but it almost completely controlled his tourettes. These studies could help improve the quality of life of many people, especially cancer and AIDS patients who already are eligible for medical use and would only benefit from improvements in the field