It asks Colorado voters to approve a 15 percent excise tax and an initial 10 percent sales tax on the sale of recreational marijuana that begins Jan. 1. Corry also opposes Denver's tax question that could add a 3.5 percent initial sales tax with the option to hike it up to 15 percent.
About a pound of marijuana was given away. Where did it come from?
[Corry] said the marijuana had been seized by the North Metro Drug Task Force "a long time ago" from a medical-marijuana provider but recently returned.
Under Amendment 64 passed by voters and now in effect, adult personal possession of up to an ounce of marijuana is legal, as is transferring up to an ounce between adults. Commercial sales begin January 1.
The group opposing the tax believes marijuana should be taxed at the same rate as alcohol, which is less than 1%. Its PR release for yesterday's event said:
The joint handout is a real-time demonstration of basic economics: Proposition AA's extreme taxes will undercut the Regulated Marijuana Market, and illegal Black Market and legal Gray Market (which is legal, but untaxed and unregulated) will both expand when the Government parasite kills the Industry host.
Others disagree.
“We really think that we need to keep the promise to Colorado voters by passing this; by establishing a regulatory structure and making Colorado a model for how to appropriately and responsibly regulate this product,” explained Brian Vicente, chairman of the Committee for Responsible Regulation and co-author of Amendment 64.
Supporters also believe the higher taxes are necessary to have adequate funds to enforce the strict regulations that are the only thing keeping DOJ at bay.
Not all the money goes to enforcement:
Revenue from the excise tax will go toward public school construction, while the money collected from the retail tax will back the regulations that were enacted by the Legislature.
The taxes are expected to bring in around $70 million a year, with the first $40 million going to school construction. The remainder will be used for enforcing the regulations.
I support the tax. I've always said, tax and regulate. I don't think it's a sin tax. It's the price of ensuring regulations are adequate and fairly enforced, which is essential to making Colorado's new law successful. If Colorado successfully implements legalization, it will spread to other states. If it fails, other states will be more wary.
What's the cost of an ounce of marijuana in Colorado? Here's an index.
Colorado's regulatory rules on legal marijuana are here. A report on the fiscal impact is here.
There's no such thing as a free lunch in the drug business. Nor should anyone expect one.
