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Colorado Pot Tax Foes Lose 1st Round

DENVER (AP) — A handful of marijuana activists in Denver have lost their first effort to have pot taxes thrown out.

The activists argued in a daylong hearing Friday that because pot is illegal under federal law, the state of Colorado can’t collect taxes on the drug.

Denver District Court Judge John Madden rejected their request for an injunction on the taxes.

The Denver Post reports that Madden says the pot taxes aren’t causing immediate injury. But the lawsuit is proceeding to a full hearing.

The question of how to tax pot has divided the marijuana community. Some say the taxes are too high to cut out the black market. Other marijuana activists support the taxes, which include a 12.9 percent sales tax and a 15 percent excise tax.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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