Colorado Marijuana ‘Tax Holiday’ Set To Boost Business

200Colorado marijuana businesses and enthusiasts have a new reason to celebrate this year. A special “tax holiday” on September 16 will allow cannabis consumers to skip paying the state’s 10% recreational marijuana tax – an occurrence that is anticipated to fuel high cannabis sales.

The tax break is a result of an obscure provision in state laws and likely will never happen again, reported Denver’s 9News. But this one-time tax holiday has been established by a bill that Colorado Gov. John Hickenlooper signed on Thursday (June 18).

On September 16, legal recreational cannabis transactions will still be subject to regular sales and local taxes, but not to the 10% special sales tax specific to marijuana. The cannabis industry in the state expects that consumers will capitalize on this tax break by piling up on pot, which in turn will boost sales for recreational shops. Already, the “holiday” is seen as a second 4/20 in 2015, and even a pot Black Friday.

In addition, 9News reported that the measure signed by Hickenlooper will lower the special cannabis tax in 2017, from 10% to 8%.

These developments are highly welcomed by the Colorado marijuana industry, which has greatly contributed to the state’s tax income since the herb has been legalized. State data shows that from just January 1 to March 31 this year, Colorado marijuana businesses have paid $17.4 million in excise taxes and $33 million in retain cannabis sales taxes. Those numbers are dramatically higher from the $4.74 million and $10.1 million, respectively, collected in the same timeframe in 2014.

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