Last November, Colorado voters approved a constitutional amendment that legalizes recreational marijuana use. State officials are now considering how to tax and regulate marijuana. This coming November, voters will be asked to approve a 15% excise tax plus a 10% statewide sales tax on all retail marijuana purchases.
As reported in the Denver Post, Denver’s city council recently approved an additional 3.5% local tax on marijuana sales to cover the costs the city estimates it will incur in effectively regulating and enforcing the new law. If voters approve the local tax in November, it is expected to raise $3.4 million a year.
Denver Mayor Michael Hancock had wanted a 5% tax on marijuana sales, with an option to increase it to up to 10% to cover the city’s costs. Some city council members had previously called for a tax rate of up to 15% to cover other service costs as well.
