Colorado voters approve super sales tax on recreational marijuana sales

sales tax on recreational marijuana

sales tax on recreational marijuana

When Colorado and Washington voters approved the legalization of recreational marijuana, tax analysts weren’t sure how the state governments would tax these sales. This month, Colorado voters decided that sales tax on recreational marijuana should be higher than on normal goods.

Voters approved a bill that charges a combined 25% sales tax rate on recreational marijuana sales in Colorado. This higher rate won’t apply to medical marijuana sales. The Colorado expects to bring in about $70 million a year from these new taxes.

Opponents of this bill say that while the government should tax marijuana sales, this rate is too high. In comparison, the Colorado government only taxes beer at 8 cents per gallon, roughly the amount of beer in a 12-pack. In comparison to alcohol, marijuana has a significantly higher sales tax rate.

Read more at RT.com