Audio: CPR’s Ben Markus reports on marijuana tax revenue

Colorado voters overwhelmingly passed heavy taxes on marijuana, and the state has collected tens of millions in the first year of legalization.

But all of the taxes raised from pot have to be refunded, unless lawmakers can agree on a solution. The Taxpayer Bill of Rights section of the state Constitution is triggering the refund, putting money for schools and prevention programs at risk.

For now, dispensaries like Colorado Harvest Company in Denver charge 22 percent in taxes for every pre-rolled joint, vaporizer, or brownie.

It’s an expense that customer Jason Swart doesn’t mind paying.

“Just for the convenience of being able to come in, go to a store, and the selection — I think it’s well worth it,” Swart said.

Swart is new to Colorado; he just moved here from Kansas. But he recognizes that marijuana taxes help the state.

“As far as I know it goes to good things, Swart said. “Schools and roads. I know we got a lot of potholes.”

“Orwellian-type of situation”

“Legalize it and tax it” was the mantra of the pot movement in Colorado, and one of the big reasons voters approved of legalization. Now, though, the impending refunds are a bizarre turn of events that have taken many by surprise.

“This is an Orwellian-type of situation,” said Tim Hoover with the left-leaning Colorado Fiscal Institute.

Here’s the issue: the Taxpayer Bill of Rights, or TABOR, requires the state to ask voters to approve any new taxes. When doing so, the state must estimate the money the tax would raise, and estimate the overall tax collections without it.

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Gov. John Hickenlooper ended his remarks to the Economic Club of Colorado on Tuesday with a warning for the state’s business leaders.

A major focus of his second term is preparing for Colorado’s impending growth — with 3 million more residents expected in the next 20 years, he said. The Democrat said Colorado is growing “almost too rapidly” and the growth costs money.

“We’re probably going to have to spend a bunch of money that will take the business community stepping up,” he said, saying industry leaders will need to recognize the need to spend money on roads and infrastructure.

To read the rest of this article, click the following link:
http://blogs.denverpost.com/thespot/2015/02/10/hickenlooper-says-state-needs-spend-big-prepare-growth/117137/

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Getty – Kevork Djansezian

Americans who are getting a jump on their income taxes may already be looking forward to receiving (and spending) their refund checks. But for those who live in Colorado, another type of rebate may be making its way toward their bank accounts: a “reefer refund”!

According to state law, Denver may be forced to return some of the money collected in recreational marijuana taxes during the first, full year of legal sales. Residents and tourists racked up $50 million in taxation revenue for Colorado in 2012.

Image credit: Flickr Creative Commons

The state constitution contains an amendment referred to as a Taxpayers’ Bill of Rights (TABOR), which was approved by voters almost a quarter-century ago. In addition to requiring all new taxes to receive the go-ahead from Colorado voters, TABOR also compels the state to issue refunds to taxpayers whenever it takes in too much money in revenues. The definition of “too much” is set by a complex formula that has been established under the law.

Since TABOR was passed, residents of the Rocky Mountain State have received these types of refunds six times, with total amounts ranging from about $40 million to over $1 billion.

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As the Colorado 2015 Legislative Session moves into full-swing, Morgan County stakeholders will begin discussions with representatives.

Stakeholders started those discussions Monday with the first Legislative Coffee event. Representatives from area businesses, Morgan County Economic Development Corporation, Morgan Community College, Brush Chamber of Commerce, Fort Morgan Area Chamber of Commerce, Morgan County Sheriff’s Office and the city of Fort Morgan attended the event Monday at Café Lotus.

The small group met with State Sen. Jerry Sonnenberg and State Rep. Jon Becker to discuss bills and matters at the state legislative session.

The Legislative Coffee event on Monday followed a less formal format than usual, Becker said.

“Sometimes it’s more formal where people stand up and present, but it’s still early in the session,” Becker said.

The group discussed matters regarding tax on medical marijuana, faster internet services in the eastern plains and Taxpayer Bill of Rights. Continue reading →