Yes, you heard correctly.
Because of an unusual Colorado sales tax law, all recreational marijuana taxes will be waived on September 16th, 2015.
In 2013, Colorado voters approved a 25% tax on recreational marijuana sales. Over the first few months of legalization in 2014, Colorado collected $25 million in marijuana tax revenues – that number increased to $44 million over the same period in 2015.
Colorado law says that if its overall state tax collections exceed projections, the new tax will be waived and refunded. Colorado estimated $70 million in recreational marijuana taxes, and collected only $58 million. Because the overall tax collections surpassed projections, the law still applies. The waiver will allow taxes to revert to zero for a day.
Although a whopping 25% will be saved by recreational customers, Mary Jane won’t be completely tax-free. A 2.9% sales tax, medical marijuana taxes and local taxes still apply.
More good news?
Colorado plans to reduce marijuana taxes down to 8% by 2017.
Until that glorious day, Colorado pot enthusiasts can feel good about the fact that they’re helping contribute to a more beautiful state… and maybe even paving the way to cannabis freedom for for the rest of these United States.