Colorado to Issue Marijuana Tax Refunds

Business
Colorado to Issue Marijuana Tax Refunds

Colorado’s politicians are getting a little green over Tax Day this year.

Colorado must legally issue refunds for over-collection of cannabis taxes, the Associated Press reports today — the latest legalization wrinkle in the Rockies.

The problem stems from a 1992 voter amendment kicking back unspent taxes to voters based on a formula related to inflation and population growth. That formula says Colorado over-collected some of the $50 million in recreational cannabis tax revenue in 2014 — the first year of sales to adults 21 and over.

State officials do not know if they write checks to cannabis customers or all voters in the state. The voter-mandated refund for over-collection of taxes has Republicans ditching their beliefs to join with Democrats in support of a new law clawing back the government revenue before checks are issued. Republicans have supported the last six refunds under the Colorado Taxpayers’ Bill of Rights, but are ready to flip-flop for pot dollars, the AP reports.

Story by David Downs at Smell The Truth. Check out Smell the Truth for all the latest cannabis news and features.