Thanks to pot sales and state tax law, some Colorado residents might be getting a pleasant refund this season.
Colorado’s constitution only allows the state to collect a certain amount in taxes, and mandates that the rest be refunded. That amount is determined by inflation and population growth—and apparently this year’s $50 million in pot taxes has put them over the limit.
They could end up shelling out as much as $30.5 million in refunds, which amounts to about $7.63 per person.
One Colorado resident, David Huff, told the Associated Press that he’s quite enthused to get something back from pot’s steep (30 percent or more) tax rates. “I don’t care if they write me a check, or refund it in my taxes, or just give me a free joint next time I come in. The taxes are too high, and they should give it back.”
In a rare moment of partisan accord, Republicans and Democrats both want to find a way for the state to keep that money. Some are considering a vote on exempting pot taxes from the law. And Republicans are saying this is one instance in which they’re down with the high tax rates:
“I think it’s appropriate that we keep the money for marijuana that the voters said that we should,” said Republican Senate President Bill Cadman.
Part of the problems with refunds is the logistics—do all residents get their $7 kick-back? Or just pot consumers? How would you ever figure that out in a timely manner?
It’s no secret that Colorado’s weed market is booming—this year, experts predict it will be a $700 million industry for the state.
