Next week, Colorado's recreational marijuana users are in for a tax treat.
On Wednesday, Sept. 16, the state's two marijuana related taxes, which come to a combined 25 percent, will be waived.
Sweet Leaf marijuana retail shop in Denver, Colorado. Photo courtesy Colorado Pot Guide.
For folks who enjoy taking time for a little toking, this is way better than any of the back-to-school sales tax holidays that 18 states held earlier this summer.
Day off for sales and excise taxes: Thanks to the intricacies Colorado's Taxpayer Bill of Rights (TABOR) requirements, the state's 10 percent retail marijuana sales tax and its 15 percent retail marijuana excise tax won't be in effect on Sept. 16.
That day was selected because it's the day after the state's certification of its previous year's tax collection total.
So on Sept. 16, retail marijuana store owners won't collect the 10 percent state sales tax from customers buying the popular plant product.
For a purchaser of an ounce of pot that, say, sells for $200 in Denver before tax, the one-day tax holiday will save the weed devotee $20. That should buy some satisfying munchies.
Similarly, retail marijuana cultivation owners won't assess the state's 15 percent excise tax on any first-time sales or transfers made that day.
Other taxes remain: However, Colorado's 2.9 percent general sales tax, as well as any local taxes that apply to marijuana, will remain in effect on Sept. 16.
And all taxes, state and local, will be in full force again on Thursday, Sept. 17.
So mark your calendars, Colorado marijuana buyers, and enjoy your mini-marijuana sales tax holiday.
And circle Nov. 3, too.
Thanks to more TABOR rules, Colorado voters must decide one final time whether to keep the 10 percent and 15 percent pot taxes, which were approved by a two-to-one margin two years ago.
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