This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/us-news/2015/sep/16/colorado-tax-free-marijuana-one-day
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Colorado's marijuana consumers get one-day tax holiday | Colorado's marijuana consumers get one-day tax holiday |
(35 minutes later) | |
Marijuana consumers were taking advantage of a tax holiday in Colorado on Wednesday, with some lining up early for doorbuster-style deals. | Marijuana consumers were taking advantage of a tax holiday in Colorado on Wednesday, with some lining up early for doorbuster-style deals. |
A quirk in state law led Colorado to suspend most taxes on recreational pot for one day, including a 10% sales tax on pot and a 15% excise tax on marijuana growers. | A quirk in state law led Colorado to suspend most taxes on recreational pot for one day, including a 10% sales tax on pot and a 15% excise tax on marijuana growers. |
At the Grass Station near downtown Denver, a dozen shoppers were in line before doors opened. | At the Grass Station near downtown Denver, a dozen shoppers were in line before doors opened. |
“Lower prices are always better,” said Benjamin DelCarpio of Centennial, who was rewarded for standing in line with a 50% off coupon. | “Lower prices are always better,” said Benjamin DelCarpio of Centennial, who was rewarded for standing in line with a 50% off coupon. |
The tax break is happening because Colorado underestimated overall state tax collections last year. Under the state constitution, the accounting error triggers an automatic suspension of any new taxes – in this case, the recreational marijuana taxes voters approved in 2013. | The tax break is happening because Colorado underestimated overall state tax collections last year. Under the state constitution, the accounting error triggers an automatic suspension of any new taxes – in this case, the recreational marijuana taxes voters approved in 2013. |
Retailers are hoping for big crowds, rolling out bargains to attract shoppers. The state had no estimate on how many shoppers might turn out. | Retailers are hoping for big crowds, rolling out bargains to attract shoppers. The state had no estimate on how many shoppers might turn out. |
Wednesday’s break came a day after Colorado made final its accounts for the fiscal year that ended in June. | Wednesday’s break came a day after Colorado made final its accounts for the fiscal year that ended in June. |
The final tax numbers covered the first full fiscal year in which adults over 21 could legally buy both marijuana and alcohol. | The final tax numbers covered the first full fiscal year in which adults over 21 could legally buy both marijuana and alcohol. |
Alcohol excise tax collections were up 2.4%, to about $42m. Marijuana-specific taxes came in at about $70m. | Alcohol excise tax collections were up 2.4%, to about $42m. Marijuana-specific taxes came in at about $70m. |
The figures don’t include a statewide 2.9% sales tax. In other words, alcohol probably still produces more overall tax money than pot, though the state doesn’t keep data on how much general sales tax comes from alcohol. | |
Recreational pot is taxed much more steeply than alcohol – 25%, plus statewide and local sales taxes. Alcohol is taxed by volume, ranging from 8 cents a gallon for beer to $2.28 a gallon for liquor, plus sales taxes. | Recreational pot is taxed much more steeply than alcohol – 25%, plus statewide and local sales taxes. Alcohol is taxed by volume, ranging from 8 cents a gallon for beer to $2.28 a gallon for liquor, plus sales taxes. |
Colorado saw an increase last year in all three tax classes of alcohol. Beer was up 1.1%, liquor was up 3%, and wine was up 1.3%. | Colorado saw an increase last year in all three tax classes of alcohol. Beer was up 1.1%, liquor was up 3%, and wine was up 1.3%. |
The pro-legalization Marijuana Policy Project lauded the sales tax holiday as “a much-deserved day off” for marijuana consumers, who carry a heavier tax burden than people who buy alcohol. | The pro-legalization Marijuana Policy Project lauded the sales tax holiday as “a much-deserved day off” for marijuana consumers, who carry a heavier tax burden than people who buy alcohol. |
However, it’s far too soon to say how marijuana legalization has affected behavior when it comes to consuming intoxicants. | However, it’s far too soon to say how marijuana legalization has affected behavior when it comes to consuming intoxicants. |
A University of Colorado-Denver economist who has studied how marijuana availability affects alcohol consumption said the Colorado numbers don’t show much. | |
Economist Daniel Rees pointed out that beer sales growth didn’t keep up with population growth in the last year, estimated at about 1.7% between 2014 and 2015. | Economist Daniel Rees pointed out that beer sales growth didn’t keep up with population growth in the last year, estimated at about 1.7% between 2014 and 2015. |
“I wouldn’t read too much into one state’s experience,” Rees said. | “I wouldn’t read too much into one state’s experience,” Rees said. |
Previous version
1
Next version