Accounting Error Brings Tax-Free Pot Holiday

By Sky News US Team

Recreational marijuana retailers in Colorado are gearing up for a one-day moratorium on a 25% tax on pot. An accounting error in last year’s overall tax collections automatically triggered the suspension of most taxes on recreational cannabis. The one-day pot Discount Holidays © holiday means consumers will not have to pay a 10% sales tax. The state is also suspending a 15% excise tax on marijuana growers.

Accounting Error Brings Tax-Free Pot Holiday

Accounting Error Brings Tax-Free Pot Holiday

Retailers are bracing for larger than normal crowds on Wednesday, and have been rolling out deals to attract shoppers. Taxes will revert to normal on Thursday.

Accounting Error Brings Tax-Free Pot Holiday

Accounting Error Brings Tax-Free Pot Holiday

Play video “Pot On Sale: January 15 2014”

The tax break was announced after Colorado released its figures for the fiscal year ending in June. The records indicated that marijuana tax collections totaled $70m ( 45m). By comparison, state alcohol excise taxes raked in about $42m ( 27m) – up 2.4% from 2013, the state said.

Recreational marijuana is taxed at a much higher rate in Colorado, and the alcohol figures did not include a state-wide 2.9% sales tax. Colorado became the first state to allow the sale of pot for recreational use in January 2014. Washington state followed suit in July that same year.

Alaska, Oregon and Washington DC have since passed measures legalising recreational pot.

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