DENVER – The latest on Colorado’s marijuana tax holiday caused by a quirk in the law (all times local):
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 per cent sales tax on pot. Growers pay an additional 15 per cent 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.
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 Benjamin DelCarpio of Centennial says “lower prices are always better.” He was rewarded for standing in line with a 50 per cent off coupon.
A Colorado tax glitch has forced the state to suspend 25 per cent in recreational pot taxes for one day only.
Retailers have responded by trying to attract the most customers with deals.
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 per cent sales taxes on pot. The state is also suspending a 15 per cent excise tax on marijuana growers.
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 per cent on Thursday.
Until then, retailers are hoping for big crowds. The state had no estimate on how many shoppers might turn out.