Denver wants more affordable housing, so they are proposing raising the sales tax on Cannabis purchases to pay for it. The tax structure presently looks as follows:
1. 15% excise tax the grower pays (based on avg retail cost of marijuana products).
2. 10% special marijuana state sales tax.
3. 2.9% state sales tax on everything
4. 3.5% (now) Denver sales tax. Any taxing entity can charge what they want or even charge nothing.
The tax on marijuana is at least 25% or more depending on which city you purchase in. One of the goals was to stop the black market sales so I am wondering what this will do to black market sales. I was afraid the politicos would turn marijuana sales into a cash cow to pay for all their pet projects. I have a MMJ card so my purchases don't presently pay a high tax rate. I am wondering how long MMJ will be kept separate because MMJ sales don't make that much money for the politicos.
DenverPost.com
1. 15% excise tax the grower pays (based on avg retail cost of marijuana products).
2. 10% special marijuana state sales tax.
3. 2.9% state sales tax on everything
4. 3.5% (now) Denver sales tax. Any taxing entity can charge what they want or even charge nothing.
The tax on marijuana is at least 25% or more depending on which city you purchase in. One of the goals was to stop the black market sales so I am wondering what this will do to black market sales. I was afraid the politicos would turn marijuana sales into a cash cow to pay for all their pet projects. I have a MMJ card so my purchases don't presently pay a high tax rate. I am wondering how long MMJ will be kept separate because MMJ sales don't make that much money for the politicos.
DenverPost.com
