Colorado – 2013 Statewide Ballot Measure Proposition AA – Tax on the Sale of Marijuana

SALT Report  3142– Colorado Voters will be going to the polls in an effort to pass a Colorado state law which would impose a 15% excise tax and a 10% sales tax on all recreational uses of marijuana.  State lawmakers are stating that the resulting tax will infuse approximately $70 million a year in additional revenue with the first $40 million of that going to fund for public school capital construction.

The City of Denver, CO has also sent an initiative to the voters which would create a sales tax of 3.5% but the “ballot question allows the city to increase or decrease the rate without further voter approval as long as the rate stays below 15%.”  Also, the revenue generated would be used to “pay for issues related to marijuana legalization – such as regulating the stores or creating public-health educational campaigns on pot.”

For Further Information:

Colorado House Bill (2013) 13-1318 Retail Marijuana Taxes – Colorado Proposition AA – Taxes on the Sale of Marijuana (2013)

The Denver Post – Marijuana Tax Windfall from Proposition AA Unclear for Colorado Cities – City of Denver Additional Marijuana Sales Tax, Question 2A (November 2013)