Due to an unusual tax law in Colorado, recreational marijuana will get a one-day tax holiday on Sept. 16, during which a 10 percent sales tax and 15 percent excise tax won’t be collected, as reported by the Associated Press. A regular 2.9 percent sales tax still applies, however, as do medical marijuana and local marijuana taxes.
— Mitch Jelniker (@MitchJelniker) September 9, 2015
The sales-tax break should cut about $20 off the price of a mid-grade ounce of pot in Denver, where ounces have been selling for about $200 before taxes, as per the AP.
The tax holiday could cost the state $3 million to $4 million, according to officials.
That’s not great for the state, but it should be good for Colorado marijuana dispensaries and retailers, who are expecting large crowds on Sept. 16.
— Savina Heartland (@SavinaHeartland) September 9, 2015
“At first I was in disbelief,” says the owner of a dispensary in the Denver suburb of Northglenn. “Once our lawyer said no, we really are doing this, we started getting ready. We’re thinking there will be huge crowds.”
Colorado law requires any new taxes be waived and refunded if the overall state collections exceed the projections given to voters when they approved the new taxes, as reported by NBC News.
Lawmakers decided on a one-day Colorado marijuana tax waiver to comply with the marijuana tax requirements, according to NBC News.