The Latest: Colorado Pot Shoppers Line Up For Tax-Free Deals
DENVER (AP) — The latest on Colorado's marijuana tax holiday caused by a quirk in the law:
1:25 p.m.
Crowds thinned after lunch at Colorado marijuana shops, where most state taxes on recreation pot were waived Wednesday.
Some shops had deep lines when they opened their doors. But staffers at several Denver-area shops said lines got shorter within a couple hours. Few thought sales will eclipse Black Friday Christmas shopping, or sales around the 4/20 marijuana observance.
Shopper Tim Persoff of Denver was prepared to stand in line Wednesday afternoon but had no wait.
"I didn't know what to expect, but this isn't bad," said Persoff, shopping at a dispensary near downtown.
The state tracks daily marijuana sales, but it doesn't report them - making it impossible to tell whether the one-time pot tax holiday would set a sales record.
The tax break was caused by a glitch in state tax law, which requires new taxes like the 25 percent marijuana taxes to revert to zero if overall state tax collection exceed projections.
11:45 a.m.
Shoppers aren't the only ones benefiting from Colorado's one-day suspension of most taxes on pot. Marijuana growers also are getting a hefty tax break.
One owner and grower saved $45,000 in taxes before 10 a.m. Wednesday. Tim Cullen of the Colorado Harvest Co. says he transferred a month's worth of inventory, or about 150 pounds of marijuana.
Colorado charges consumers an extra 10 percent sales tax on pot. Growers pay an additional 15 percent excise tax on wholesale weed, or about $300 a pound.
Colorado is waiving both those taxes for one day only Wednesday because of an accounting error when the taxes were first approved.
Retailers are stocking up on wholesale inventory to take advantage of the glitch.
9:20 a.m.
Marijuana shops in Colorado were doing brisk business Wednesday morning as shoppers lined up for doorbuster-style deals on a one-day suspension of most taxes on pot.
At The Grass Station near downtown Denver, a dozen shoppers were in line before doors opened.
Early shopper Ben, of Centennial, says "lower prices are always better." He was rewarded for standing in line with a 50 percent off coupon.
A Colorado tax glitch has forced the state to suspend 25 percent in recreational pot taxes for one day only.
Retailers have responded by trying to attract the most customers with deals.
6:45 a.m.
An accounting error in Colorado is paying off for marijuana consumers Wednesday, when a quirk in a state tax law prompts the state to suspend most taxes on recreational pot.
The one-day pot tax holiday means Colorado won't collect 10 percent sales taxes on pot. The state is also suspending a 15 percent excise tax on marijuana growers.
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The tax break is happening because Colorado underestimated overall state tax collections last year. Under the state constitution, the accounting error triggers an automatic suspension of any new taxes — in this case, the recreational marijuana taxes voters approved in 2013.
The taxes revert to 25 percent on Thursday.
Until then, retailers are hoping for big crowds. The state had no estimate on how many shoppers might turn out.
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