Marijuana Taxes Go Up in Smoke for One Day in Colorado

It isn’t April 20, but Colorado is staging its own version of pot day. It sounds odd, but the state claims tax law is forcing it to suspend taxes on recreational marijuana for one day, September 16, 2015. The bizarre tax holiday is due to what Gov. Hickenlooper called a fiscal glitch in the state constitution. Value buyers may note that the holiday should shave about $20 off the price of a mid-grade ounce of marijuana. There could be huge crowds and hoarders.

September 16, 2015 was picked because an end-of-year fiscal report is due to be certified the previous day. According to state figures, $700 million worth of legal cannabis was sold in Colorado in 2014. The tax tally was $76 million. Pot taxes were projected to raise $70 million in 2014. They actually raised $58 million, but because overall tax collections exceeded projections, Colorado must ask voters for permission to keep the money. To comply with the requirement that the taxes revert to zero, lawmakers settled on a short one-day tax waiver.

– Read the entire article at Forbes News.