Marijuana Wholesalers Save Thousands On Tax Holiday
The quirk in the tax law saved shoppers some sales tax but saved wholesalers tens of thousands.
The odd tax waiver was triggered almost two years ago, when Colorado voters approved two taxes on recreational marijuana — a 10 percent sales tax for shoppers and a 15 percent excise tax for wholesale growers.
Ahead of that vote, state tax analysts miscalculated overall state revenue for 2014. The error triggered a mandatory suspension of the new pot taxes.
Lawmakers decided to waive the taxes only for a single day, though voters will have to return to polls in November to authorize the state to keep about $50 million in pot taxes collected in 2014.
Confused? So were many shoppers — but they loaded up on lower-cost weed anyway.
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