Taxes On Recreational Pot Sales Could Top 35 Percent
DENVER (CBS4)– The taxes on recreational marijuana might go a lot higher than first thought. Smokers buying at shops in Denver may pay up to 35 percent in taxes.
Colorado voters will be asked to approve two state taxes totaling 25 percent on all retail marijuana sales in the November election. They may be asked to approve an additional city tax for Denver.
Denver Mayor Michael Hancock wants to add an additional five to 10 percent city tax on top of that.
Hancock said the money is needed to pay the costs of regulating the drug.
Critics complain severe taxes would destroy a new industry already approved by voters.
The Denver City Council has until August to decide if the tax question will go on the November ballot.
State tax amounts of 15 and 10 percent also need approval from voters.