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Colorado Voters Approve 25 Percent Taxes on Recreational Marijuana

Colorado Voters Approve 25 Percent Taxes on Recreational Marijuana

By Keith Coffman | Reuters – 8 hours ago..

By Keith Coffman

DENVER (Reuters) - A Colorado measure to impose sales and excise taxes of 25 percent on newly legalized recreational marijuana and earmark the first $40 million in revenue for public schools was approved by voters on Tuesday, Governor John Hickenlooper said.

The move showed a willingness on the part of Colorado voters to tax marijuana for the public benefit even as they roundly defeated a broader tax measure that would have increased state income taxes to raise $1 billion for schools.

Colorado and Washington last year became the first U.S. states to legalize marijuana for recreational purposes. But Colorado, whose constitution requires a statewide vote to approve tax increases, left it to voters to decide how to tax the newly legal drug.

Read more: http://ca.news.yahoo.com/supporters-declare-victory-colorado...

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Colorado Highlife

The real joke is: We passed a Constitutional Ammendment for Marijuanna instead of repealing the law. Everyone knew this was going to happen one way or another. Thankfully the Tax is much lower then the Tax on Cigarettes and Alcohol.
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The reallity on the ground is most of us still buy from the blackmarket at wholesale prices. ($130-$175/oz) The dispenseries charge ($175-$300/oz). Add 25% and we still have the best prices in the nation.
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All that said; I'm a cheap basterd and I always hate paying taxes. Especially when they use a "Sin Tax" to pay for schools and the general budget. But here in Colorado, stupidity is abundent!

25% Tax on something people should grow for free?

Hilarious!

"We are not human beings having a spiritual experience; we are spiritual beings having a human experience"—Pierre Teilhard de Chardin

WTF

So they legalize it and tax the hell out of it. All this is going to accomplish is making sure people keep buying it off the black market and avoiding this tax.

The wrong move...

Giving the government control of anything is a real bad idea.

25% tax??? Thievery!

The only proper thing to do with cannabis is to keep the gov away from ALL aspects of it and leave it up to the people and the free markets. NO TAX. Grow your own folks.

I am leaning more and more to full on Anarchy, anything the gov touches is corrupted, perverted and destroyed. We don't need the bums.

Oh and byw, I use the proper name of "cannabis" instead of the fictitious evil sounding name "marijuana" that was created to demonize the plant...

-------------------------------------------------------------------
Hey Archons', we are taking our planet back and there's nothing you can do about it!

Taxes are theft

Everyone voting to steal from people trading plants with each other (taxes are stealing), is a thief. So great, Colorado went from putting people in a cage and stealing their money (fines), if they smoked a plant, to stealing their money before they smoke a plant, and if they try and not be stolen from, then they will be put in a cage... WHOOPIDEEDOOO!!!!!!

My friends in Colorado dont

My friends in Colorado dont care, they just grow their own. Why spend money one something thats completely free and easy to grow? Sure it takes some time and dedication but once you get going its easy.

Good news for growers...

that transact outside of the state governmental system.

Unfortunately not for professional growers

The underground Colorado marijuana/mmj grey market was destroyed years ago. It still exists but it’s mostly dead and only kept alive by growers (and disp) sending product out of state, mainly Nebraska, Iowa and Texas.

The destruction started in 2009 just before the release of the ogden memo which “allowed” states to enact medical marijuana laws/regulations without interference from the feds (except in special circumstances). By then dispensaries were popping up by the 10’s and soon thereafter by the 100’s.

Back in 2006-2009 the way it worked was that disp would act as a “caregiver” under the mmj law and as long as you had a mmj card you could go to any disp and buy as much as your doctor approved. The disp mostly got their buds from basement growers and small warehouse grows they had started or large caregivers had.
By late 2009 most growers with quality product were selling directly to the disp where most people were starting to go rather than middle men with limited product. This all but killed the 85+ year old middle man market because they could not compete with the disp’s convenience, variety (20+ strains) and quickly dropping price margins.
By mid-2010 the disp buy price per QP dropped from $1200+ to -$900 for the same product. In 2010 the state gov got involved and started to regulate everything and by early 2011 it was illegal for unlicensed regulated growers to sell to disp and a 70/30 vertical integration scheme was implemented.
By that time the middle man market was crushed and a new disp model had arisen and that's where most people got their weed from or had a friend with a card get it from. The prices continued to drop until mid-2012 when they bottomed out at around $2500 a pound. The prices go up a little and down a little but they were effectively cut in half in about 2 years, ouch!

So I don’t see this affecting the black/grey market because that battle has already been fought and won. If anything people will just continue to fake medical condition to get a mmj card like over 100,000 do already. This will however drastically limit the number of marijuana stores and benefit the greedy large dispensary owners who pushed this law and have a one year head start written into the law.
The corrupt police will also funnel a ton of the tax revenue off for donuts and such… oops, I mean so “that we don't have people driving who are high”.

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awesome analysis mmj...

thx.
Crony/False Capitalism strikes again... so corrupt..
You can literally SEE (by watching the plunder and 'controls' imposed on this 'virgin' market)
just how FAR we've come AWAY...
from ANYTHING resembling a 'FREE' market.
Capitalism my ass..
this should SCREAM the truth, just simply looking at this microcosm of controls infecting and extorting from this 'untouched' market
to anyone NOT understanding and BLAMING/CONDEMNING 'capitalism' and 'free markets' for our current woes.
If this is all that's left.. this complete DISTORTION of 'free markets'..
it's no mystery why Uruguay is getting all the glory now.
$10/OZ. by decree of the 'poorest President in the World' .

Cheers,
G.

thanks brother, your post analysis is spot-on too

believe it or not that was the short version lol. i could write a book about all the shenanigans carried out along the way by the gov, disp owners and all other parties involved.

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my attorney says in denver it will be over 50% in total taxes!

Democratic state Sen. Pat Steadman of Denver and (Republican) marijuana activist and attorney Rob Corry, join the Spot live to discuss Prop AA. The measure, which voters statewide will cast ballots on this Tuesday, would ask voters to approve a 15 percent excise tax and an initial 10 percent sales tax (can/will be raised to 15% sales tax). Plus a $18,000 licensing fee.

50%+ taxes explained @7:30 mark

http://blogs.denverpost.com/thespot/2013/10/30/spot-live-vid...

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That's terrible...This's what's wrong with lefty pro-pot groups.

They don't REALLY support FREEDOM for the use of cannabis...
All they are doing is allowing a steady transition from illegalization to corporatization of the cannabis industry.
TPTB know that cannabis freedom is a soon-to-be eventuality, and they want to get their feet in the door, so they can control it while they still can.

I've created a truly pro-free market, libertarian/constitutional legalization advocacy group, that focuses on cannabis legalization but will also be active for all kinds of liberty issues...

P.O.T. - PEOPLE OPPOSING TYRANNY
"A real grass-roots movement"
"Are you P.O.T., or a P.E.T. (people embracing tyranny)"

Check out Lawmanjed's profile to view our brand new symbol, created by me, Lawmanjed!

P.O.T. also strongly supports individual rights and freedoms, like our 1st, 2nd, & 4th (etc.) amendment rights, strongly opposes police & government abuses of power, and opposes tyranny at all levels...

PEOPLE OPPOSING TYRANNY - Real Grass Roots!
Are you a POT or a PET - Person Embracing Tyranny?

Enforceable?

If you bought it from your pot dealer with no tax, could they catch you with it and say "show me your receipts?"

Anarchy

Buy underground; the same place you have always found it. Save your tax money and continue to NOT support government bureaucracy in any form! Just my advice, for what its worth.

25% tax? That's nothing!

Take a look at Washington State's creative marijuana tax laws. Only a liberal state like ours could create a 3 tier tax system for the marijuana industry;

1.) The Grower must collect a 25% tax from the 'Distributor'
2.) The Distributor must collect a 25% tax the 'Retailer'
3.) The Retailer must collect a 25% tax from the 'Consumer'

So the way I see it, a one time tax of 25% is a sweetheart deal. lol

Bingo!

Ad Valorem tax... Added Value tax... European tax
Next time some politician / Commentator / Pundit
starts extolling the 'virtues' of a 'value' added sales tax
THIS
is what they are talking about.
It is systemic taxation... all the way up the chain.
Lots of folks (hoping to rid themselves of the current 'income' tax system) start pushing the value added tax
but do NOT understand how it works.
This is it... it's a supply side tax.
Cheers,
G.

Brilliant idea!!! (sarcasm)

Just more money for state politicians to spend on escorts and expensive wine. I'm sure the Feds will come up with their own tax on this when it goes national and Marijuana actually will start contributing to mass murder across the globe. Once again, this country needs an enema.

“My attitude toward progress has passed from antagonism to boredom. I have long ceased to argue with people who prefer Thursday to Wednesday because it is Thursday.” - G.K. Chesterton

Arizona law prohibits...

Citizens from enjoying 'supposed' grow your own freedom(6 mature or 12 immature plants w/ $150 card).. a complete farce.
You are FORCED to buy from a licensed dispensary
IF
you live within 25 miles of one.
It amounts to creating dispensary franchises in the hands of the few.
and
it's all about taxes as well.

Hope

There's still hope that the Colorado Supreme Court will strike down the taxes as unconstitutional since it's not being taxed the same as alcohol.

Its always been about

the government NOT getting its cut as the reason for criminalizing it. Surely no one buys the moral reason ie "Marijuana Madness". Just as ridiculous as the politicians thinking that we believe they care about Saddam, Assad, Ghaddafi, Mubarak, or anyone else is "killing their own people", human rights violations blah blah blah so they can support defense contractors and start using up ordinance. HA, tell it to someone else. So now its OK to sell or have pot, 'cause they've finally figured out a way to GET THEIR CUT.

God forgives always. Man forgives sometimes. But Nature never forgives.

from what I understand an

from what I understand an individual can grow up to 6 plants and share up to an ounce at a time with friends.

what's the incentive to buy it over the counter?

There are a couple reasons people buy versus grow their own

For one, they might live in rental which doesn't allow them to grow. In cali the landlords specifically have in many rental/lease agreements that you sign off on NOT growing marijuana even if you have legal/medical reasons for doing so which can end in a breach of contract among other issues.

For two, growing your own can and usually is a daily job. If you do not have things automated in some fashion that would then require daily waterings and plant husbandry on your end. I usually spend an hour to four hours with the girls depending on how large my grow(s) were. Working in grow tents and grow cabs require more effort as you have to either move your plants out of the tent/cab each time to look them over compared to larger grow rooms, greenhouse or simply outdoor runs.

For three, it will take you 3-4 months to get your first cycle done and most people are impatient and would rather just go and buy some smoke versus waiting around for their own grower skills to kick in.

For four, the setup costs themselves would equal a couple ounces of good bud and many don't want to dump $1k-$3k into setup costs and e-bill estimates. Yes you can start small like with a cfl grow and some autos but the meds at the end of those 2 months wouldn't really last you until the next cycle is done unless you run perpetual which in itself requires more room, more tents/cabs so you can alternate among other small items that add up in cost quickly like fans, inline fans, timers, carbon scrubbers etc.

http://shelfsufficient.com - My site on getting my little family prepped for whatever might come our way.

http://growing-elite-marijuana.com - My site on growing marijuana

Yeah growing can pretty much

Yeah growing can pretty much be a part time job. If everything is going well it good but if you get a bad case of spider mites or white powder mold it can make your life a living hell.

It is fun to have your own plants though, I really miss my grow operation when I lived in CO. We had an activated carbon air filter that ran into a ventilated hood with a 1000 watt HPS bulb then into a can fan then through some ducting out the window. Lol, I used to do reading for class in the bloom room. It was awesome becuase it could be shitty and cold weather outside but in my room it was always 77 degrees and sunny :)

It sounds like you know what you are doing but if you ever need any advice another perspective on a setup just PM me.

We all share this eternally evolving present moment- The past and future only exist as inconsequential mental fabrications.

Will it be sold in convenience stores?

Like a pack of cigarettes?

They did this devil's deal

California and then Colorado and then Washington went this route of "legalize us, regulate us, tax us".

Most certainly. Viola! May I suggest a whine pairing with your entree?

There is nothing strange about having a bar of soap in your right pocket, it's just what's happening.

This is why our founders hated democracy!

Mob rule! The sheep move in the same direction.

.

the fact that someone downvoted you, obviously tells us all here that, there are still some even at DP who are completely utterly clueless of the difference between a Constitutional Republic vs. a "democracy."

this is why I personally never care about votes, but nevertheless is an interesting DailyPaul membership vox populi indicator to observe, as to what and which topics/threads/posts/replies people downvote or upvote here; which is why I just upvoted ya. LOL .D

frankly, at this juncture in history, with two RP pres election cycles behind us, with DP's 6th year anniversary, the fact that some here apparently still don't even know what a republic vs. a democracy is, and truly the clear historical fact that the Founders clearly knew the difference, and warned about it, is insanely sad, to say the least.

Lawd have mercy. Oy veh.

I feel your pain, brother. I feel your pain.

PS. suppose your downvoter perhaps misread your response to mean you were 'against' pot legalization/decrminalization, even though it's clear to me that you were/are against taxation of it, a really HIGH one at that, at 25%. Well, the Coloradan fascist statists are about to find out why there was/is a 'blackmarket' in cigarette cartons.

It's like way to illegalize pot, AGAIN, moron Coloradan statists. These people never learn, and the politicians still know how to fool the moron sheeple.

Predictions in due Time...
http://www.youtube.com/watch?v=zGDisyWkIBM

"Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy." - Dr. Ronald Ernest Paul

I appreciate the up vote

and the kind words. Just to be clear to others, yes I was talking about the taxation. :) you know how tyrants are, they never saw a tax they didn't love.

Taxation is too often a bullying tactic

Even those in government KNOW that there is no amount of tax-payer-earned dollars that can repay their cascading gambling debts; yet they continue to pursue monstrous expenditures for the benefit of cronies and party-players; buying indulgences to sin even more, WHILE seeking reelection, AND expecting to win!

They coined the phrase, "sin tax", to describe the things and activities that they believed the state and federal governments ought to, "righteously hinder", with taxes.

The, "sins", they selectively allow, and promote, only harms those perceived-to-be wards of the state who would need their medical assistance, etc; whether true or not.

Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them. - Frederick Douglass

A Freind of mine made a profound statement

He said the government's mo is to "steal your rights away, so they can sell them back to you" That statement sums up just about everything. The question is what happens when you have no more rights left to steal and no more wealth left to pay the extorsion?