Marijuana tax take nearly double expected in Colorado

Sales tax on marijuana in Colorado was so profitable last year that the state declared Wednesday a pot tax-free day. Tax collected on marijuana sales came to $70 million, much more than the $40 million the state predicted. The tax will return to 25% on Thursday but state law requires an automatic suspension of any […]

Sales tax on marijuana in Colorado was so profitable last year that the state declared Wednesday a pot tax-free day.
Tax collected on marijuana sales came to $70 million, much more than the $40 million the state predicted.
The tax will return to 25% on Thursday but state law requires an automatic suspension of any new taxes due to the accounting error.
Pot retailers are hoping for large crowds on the pot tax-free day.
Colorado became the first state in the US to legalise cannabis, after voters approved the change in 2012.
The average savings on Wednesday for a $200 ounce of marijuana will be about $20, Fox31 Denver reports, and a regular 2.9% sales tax will still apply, as will taxes on medical marijuana.
The temporary tax break could cost Colorado up to $4m in revenue.
“We’ve seen the numbers down the last couple of days in the stores,” Tim Cullen with Colorado Harvest Company told the news channel.
“People waiting for the tax-free day. We’re ready for it. The store is fully stocked and staffed. I think a lot of people will show up.”