Colorado marijuana tax revenue, Propostition AA, and TABOR
Colorado citizens may benefit financially from Proposition AA and the TABOR. Proposition AA (see image above) asked for voter approval so that the state could impose taxes on marijuana. This proposition was needed to validate Amendment 64, which required that an excise be imposed on marijuana. But, even though Amendment 64 was approved, the Colorado constitution still requires that a statewide vote approve any new taxes. Proposition AA also stipulated the amounts of retail sales taxes on the green substance.
A letter from the office of Governor John W. Hickenlooper explains why voters may be entitled to a refund under TABOR:
The proposed budget also accounts for two rebates required by the Taxpayer’s Bill of Rights (TABOR) of $167.2 million, assuming current law and the September forecast by the Office of State Planning and Budget. These include $30.5 million in the current fiscal year for new marijuana taxes. Total state revenue is higher than projected in the election blue book for 2013’s Proposition AA. Because the estimate was low, under TABOR, the state must refund the money being collected or ask voters again to keep it… If they materialize, these rebates would go out under existing formulas via tax credits or sales tax refunds when people file their 2016 taxes.
The below revenue estimates are from the final draft of Proposition AA.