Marijuana Boom On Tax-free Day In Colorado | Independent Newspapers Limited
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Marijuana Boom On Tax-free Day In Colorado

Posted: Sep 16, 2015 at 9:14 pm   /   by   /   comments (0)

The state of Colorado, United States, has found a goldmine in taxes levied on legal marijuana sale.

Sales tax on marijuana in Colorado was so profitable last year that the state declared Wednesday, a pot tax-free day.

Tax collected on marijuana sales came to $70 million, much more than the $40 million the state predicted.

The tax will return to 25 per cent on Thursday but state law requires an automatic suspension of any new taxes due to the accounting error.

Colorado became the first state in the U.S. to legalise cannabis, after voters approved the change in 2012.

The average savings on Wednesday for a $200 ounce of marijuana will be about $20, Fox31 Denver reports, and a regular 2.9 per cent sales tax will still apply, as will taxes on medical marijuana.

The temporary tax break could cost Colorado up to $4 million in revenue.

“We’ve seen the numbers down the last couple of days in the stores,” Tim Cullen with Colorado Harvest Company told the news channel.

“People waiting for the tax-free day. We’re ready for it. The store is fully stocked and staffed. I think a lot of people will show up.”



  • Source: BBC