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Marijuana tax take nearly double expected in Colorado

bbc.com

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Re: Marijuana tax take nearly double expected in Colorado

#21

Post by omni »

Zelphyr wrote: post #17
larrik wrote: post #11

I feel like this article assumes a ton of context. I guess Colorado has a tax free day today? I had to infer that from article, since it doesn't explain it, just references some "accounting error". Which might be the prediction being off? Who knows!

Yes, CO has a tax free day on cannabis only. My understanding is they reaped too much in taxes and their laws are such that they have to give the overage back. The tax-free day is a way to do that.

That's some bizarre logic. Tax-free day doesn't "give back" anything, it just slows down the rate at which they exceed what they thought was acceptable.

Re: Marijuana tax take nearly double expected in Colorado

#22

Post by MCRed »

larrik wrote: post #11

I feel like this article assumes a ton of context. I guess Colorado has a tax free day today? I had to infer that from article, since it doesn't explain it, just references some "accounting error". Which might be the prediction being off? Who knows!

Yes, from what I understand the Colorado law has a requirement that taxes justify their rate based on the revenue they will raise. This tax far exceeded the revenue, and so the constitution (or law or both) requires "payback" to the people for the excess tax revenue-- this comes in the form of suspending the tax until it can be lowered... and in this case this means the tax will be suspended for one day until the new lower tax goes into effect.

Re: Marijuana tax take nearly double expected in Colorado

#23

Post by Phlarp »

mulletbum wrote: post #13
cryoshon wrote: post #9

Earlier quoted context omitted.

These are critical parameters that we're completely blind to. I'm pro-legalization myself, because I think the data will ultimately support it as being the best option, but we need to check that hypothesis with reality.

Shouldn't there be an aspect of "what is right?" Just because taxes are more or less, revenues increase or decrease, we were putting a huge financial burden and physical burden on a drug that is no worse than alcohol. I think that is the top consideration, what is right, not which way is more financially helpful. (Not trying to be argumentative here, sorry if it sounds that way. It feels like this point is heavily mi…

Alcohol is heavily taxed, and as any liquor store owner will tell you, it's taxed at every possible opportunity: production, distribution and end user sales.

We should be striving to bring overall tax rates for tobacco and marijuana up to match alcohol.

Re: Marijuana tax take nearly double expected in Colorado

#24

Post by 6stringmerc »

JustSomeNobody wrote: post #8

Chicago and Detroit should take note. Allow drugs and tax the hell out that sh .

From what I understand about the drug trade, and the Cartel de Sinaloa specifically (re: Chapo Guzman), Chicago could probably fix its pension issues and have money left over by taxing the amount of cocaine that flows through that city.

Re: Marijuana tax take nearly double expected in Colorado

#25

Post by pavel_lishin »

ohitsdom wrote: post #16
JustSomeNobody wrote: post #8

Chicago and Detroit should take note. Allow drugs and tax the hell out that sh .

If you tax it too much, I'd imagine that'd increase viability for a black market.

But a black market already exists.

Re: Marijuana tax take nearly double expected in Colorado

#26

Post by xienze »

The bad news is that this amount of revenue will become the new normal, i.e., future budgets will always assume this amount of revenue or more. I think the novelty factor wearing off and other states legalizing marijuana will put a dent in this number in the future. So hopefully the government won't go too nuts assuming hockey stick growth.

Re: Marijuana tax take nearly double expected in Colorado

#27

Post by chimeracoder »

xienze wrote: post #26

The bad news is that this amount of revenue will become the new normal, i.e., future budgets will always assume this amount of revenue or more. I think the novelty factor wearing off and other states legalizing marijuana will put a dent in this number in the future. So hopefully the government won't go too nuts assuming hockey stick growth.

> The bad news is that this amount of revenue will become the new normal, i.e., future budgets will always assume this amount of revenue or more.

That's good news, not bad news (for legalization advocates). It becomes the new normal, which means that if anybody wants to reverse course, the burden is on them to find alternative sources for $50-100MM in tax revenue.

And a major chunk of the tax revenue is explicitly earmarked for public education, which is makes it that much more difficult for a politician just to ignore the tax revenue and repeal Amendment 64 without finding an alternate source.

Re: Marijuana tax take nearly double expected in Colorado

#28

Post by natrius »

xienze wrote: post #26

The bad news is that this amount of revenue will become the new normal, i.e., future budgets will always assume this amount of revenue or more. I think the novelty factor wearing off and other states legalizing marijuana will put a dent in this number in the future. So hopefully the government won't go too nuts assuming hockey stick growth.

If the novelty factor starts to wear off, just smoke again so everything seems novel.

Re: Marijuana tax take nearly double expected in Colorado

#29

Post by leesalminen »

lotharbot wrote: post #5
mason240 wrote: post #2

>Tax collected on marijuana sales came to $70 million (does not give the time period) How much does Colorado collect in taxes on cigarettes and alcohol? I can't find any numbers to put this into context.

Colorado collected $42 million in alcohol taxes over the same time period. http://dailycaller.com/2015/09/15/colorado-just-became-the-f...

This doesn't take into account the revenue the state gains through its vicious DUI/DWAI laws.

I would venture to guess that number far exceeds $42 mm/annum.

Re: Marijuana tax take nearly double expected in Colorado

#30

Post by atom-morgan »

pavel_lishin wrote: post #25
ohitsdom wrote: post #16

Earlier quoted context omitted.

If you tax it too much, I'd imagine that'd increase viability for a black market.

But a black market already exists.

And taxing it enough ensures those black markets don't disappear.
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