Friday, May 10, 2013

High on Taxes in Colorado – if you can smoke it – Colorado can Tax it! – Marijuana Tax Passes Legislature

The State of Colorado has passed a sales and excise tax on recreational marijuana. (NPR) According to NPR, the excise tax will be set at 15% and the sales tax at 10%. The laws regarding taxes will go to the ballot for the voters to decide as it is Colorado State law (NPR).

Compared to Beer, the Mile High State ranks 46th overall in beer taxes at .08 on the dollar, or 2 cents under the proposed weed tax(Tax Foundation).

On the other hand, once can see marijuana heading in the direction of tobacco – with Colorado setting a tax on tobacco products of 4.2 cents per cigarette and an additional 40% of the manufactures list price. (Colorado Department of Revenue.)

One can see a “cash crop” for states that are legalizing the use of marijuana and taxes on recreational or medical marijuana are sure to become part and parcel of those users’ costs. Colorado set the bar, so to speak, with marijuana sales now in the Massachusetts Legislature (having passed a ballot measure); one can see those users who were previously celebrating, now looking at the Massachusetts version of taxing anything that moves. Compared to Colorado, Massachusetts in kind to the beer drinker with a tax rate of 11 cents on the dollar (Tax Foundation) ranking 44th, however, on cigarettes, Massachustts grabs $3.01 per pack, that’s not in addition to Federal Taxes. (WWLP)

Those who fought to see marijuana legalized may be paying more in the end than they bargained for,

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