Tuesday's Voting Matters on Colorado's Marijuana Tax

Tax Professionals' Resource
November 7, 2013 — 1,446 views  
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There are just two months to go before retailers in Colorado will be allowed to sell marijuana. This will be first time ever in the United States that retailers will be allowed to do so. On the other hand, voters who headed to the voting polls in a total of six states also considered ballot measures which include questions about the tax on marijuana and requirement of labels for food that is genetically modified.

Voters Need to Decide on the Marijuana Tax Measure

Last year, voters came out with the decision of legalizing recreational marijuana in the state. This year, they have another decision to make on the same subject. At this year’s ballot, they will be asked about imposing a special excise tax of 15% on this drug to help in collecting fund for construction of schools. Along with this, they will be also asked about a sales tax of 10% to strengthen law enforcement efforts related to marijuana. The proposal is expected to pass though the opponents are arguing about it being unfair to consider marijuana for a higher tax as compared to other products like beer.

Colorado Legislative Council has predicted that if the measure is approved, it will help in generating as much as $70 million for the state tax revenue to be collected next year.

Another big decision that voters living in 11 counties of north Colorado will have to take is about the secession. They will have to decide whether they want to secede from Colorado. If they agree to split, a total of ten counties along the rural, conservative northeastern Colorado will have the option of forming another state by the name of North Colorado.

Far From Reality

But it looks like this plan will not turn into a reality as it is not just the vote of the residents of the counties that will matter. It is a much more detailed process that will decide the fate of the state. Congressional as well as statewide approval will be required for it.

Another problem is that an approval in this case or even a close vote for that matter at the county level will send out clear messages of growth in traditional anger towards the much liberal Democratic establishment based in Denver. The Democrats there have taken up many controversial measures like gay rights, green energy and gun control in recent times. These measures have not gone down quite well with the conservative thinkers of north Colorado counties.

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