DENVER (CBS4) – Marijuana activists asked a judge on Friday to temporarily prevent the state from collecting specific “marijuana taxes” on pot sales because they incriminate consumers and industry employees under federal law.
Saying the taxes “tee up a serious federal prosecution,” the attorney for the plaintiffs, No Over Taxation, argued that because Colorado specifically labels taxes on purchases as marijuana-related taxes, it’s identifying people and making them susceptible for federal prosecution.
Marijuana is illegal under federal law, but the U.S. Justice Department said it gives leeway to operators following state law.
“This is not a theoretical threat,” attorney Robert J. Corry said. “The feds are going after people in Colorado for operating licensed shops. This is a problem.”
Corry asked the judge at the preliminary injunction hearing to suspend taxation while the court decides. He said it should take less than a year.
Corry said millions are potentially impacted.
“We have a large cannabis industry in Colorado,” he said. “Lots of people purchase it and tens of thousands of people are directly employed by these shops. They could be incriminating themselves under federal law.”
The case is No Over Taxation v. Hickenlooper.
- What The Trump Presidency Could Look Like For Colorado
- Denver Businesses Eager To Apply For Cannabis Consumption Permits
- Q&A: Nation’s 1st Marijuana Club Law Shrouded In Questions
- Sentencing In Pot Money Laundering Case, Possible Colombia Connection
- Denver Starts Work On Allowing Pot In Public, A First In U.S.
- Lawmakers Wary Of Request To Raise Colorado Pot Sales Tax
- Hickenlooper Reaffirms Commitment To Health Care Exchange In State Of State Address
- Trump’s Choice For AG Has Some Worried About Impact On Legal Pot
- Teens Accused In Pot Dispensary Burglary Ring Face Numerous Felonies
- 2016 Year In Review: Small Towns, Big News