Colorado voters approve 25 percent taxes on recreational marijuana

[Sombeech]

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.
"We are grateful voters approved funding that will allow for a strong regulatory environment, just like liquor is regulated," Hickenlooper said as returns showed 65 percent of voters in favor of the tax and 35 percent against with about a quarter of votes counted.

"We will do everything in our power to make sure kids don't smoke pot and that we don't have people driving who are high. This ballot measure gives Colorado the ability to regulate marijuana properly," the Democratic governor said in a statement.
Under the marijuana tax proposal, a combined 15 percent excise and 10 percent sales tax would be imposed on recreational pot sales, with the first $40 million raised to fund school construction projects.
In Denver, a local ballot measure that would tack an additional 3.5 percent city sales tax on pot shops also appeared headed for passage, by a margin of 69 to 31 percent with roughly a third of votes counted.
Even as many proponents of legalizing recreational marijuana supported taxing the drug, some within the pot legalization community opposed the tax.
Rachel Gillette, president of Colorado's chapter of the National Organization for the Reform of Marijuana Laws, said before the vote that her organization was not against taxing cannabis sales, but that the state was going too far.
"This is not keeping with the promise to tax marijuana like alcohol," Gillette said. "It's more like regulating the sale of plutonium than alcohol. It looks like a law-enforcement money grab."
BROADER TAS MEASURE FAILS
Backers of a statewide proposal that would have increased the state income tax to raise nearly $1 billion annually for public schools conceded defeat on Tuesday, as returns showed it losing 66 percent to 34 percent with about 25 percent of votes counted.
"Tonight, we know that goal isn't happening as soon as we'd like. But it will happen," said state Senator Mike Johnston, a Democrat from Denver.
The school funding constitutional amendment would have scrapped the state's current 4.63 percent flat income tax rate tied to federal adjusted gross income tax, and replaced it with a two-tiered income tax increase.
Under the proposal, taxpayers who made less than $75,000 would have paid a 5 percent rate and taxpayers who made over $75,000 would have faced a 5.9 percent rate.
Proponents of the measure say Colorado has for years underfunded public education, and sought voter approval to put school funding on a surer financial footing.
Opponents argued that Colorado requires local school districts to allocate tax revenues, so there is no guarantee on how the money will be spent at the local level, which could be used on teacher salaries or to backfill the state's underfunded public employees retirement fund.
Backers of the tax raised more than $10 million for their campaign, bombarding television and radio airwaves with ads, touting the need for money to fund full-day kindergarten, and to restore music, art and physical education programs.
Among the donors to the pro-tax measure were Microsoft founder Bill Gates and his wife Melinda and New York City Mayor Michael Bloomberg, who, combined, donated $2 million to the campaign.
(Writing by Dan Whitcomb; Editing by Cynthia Johnston and Mohammad Zargham)

[Bootboy]

This tax won't raise the revenue they are aiming for. It'll just force it back underground to a degree. It just creates the problem of distribution by unlicensed distributors. Tax evasion baby...

[Byron]

The schools here are not underfunded...the unions have screwed it over by having reps, who do no actual work at the schools, getting paid 300K plus salaries, among other things.

The Douglas County school board kicked the union out a few years ago and the voters there reelected them all. Not only that, but school boards across the state are now being run by conservative majorities. There are a few places where the union backed candidates still rule, like Boulder, but this election was a game changer. A lot of folks simply aren't buying the union BS.

I'm glad to see my state shifting away from the Blue status. In regard to the pot tax, that's certainly a bummer...as Bootboy said, unless a LOT of people start smoking again, and buy it exclusively from the retail shops, the state won't see anywhere near what they figure in revenues.

So the people that grow, sell and buy among themselves aren't going to have anything to do with the retail shops. Not only that, but these retail shops are CASH BUSINESSES. The banks won't have anything to do with them because it's still against federal law.

Funny, huh? "Let's tax the crap out of a CASH BUSINESS" So a considerable amount of the money is going to go straight into the pockets of the retailers...unless the state has inspectors monitoring every gram that comes and goes. Oh well, I guess we'll see how it all shakes out.

I do think however, that they should have taxed it like any other product and left it at that. I like that comment by out esteemed governor Lickenpooper..."We're going to make sure people aren't driving high and kids aren't smoking pot".

What do you think lots of people are doing right now...ya stupid meathead.

Anyway...I'm right here in the thick of it, so after Jan 1st, I'll report on the cost and quality of the ganja.

[accadacca]

[rockgremlin]

40 million is a pretty high target. I do believe they will benefit, but maybe not that much. Washington included a flat 25% tax rate when it was approved by voters last year. Colorado had to think and vote about it first apparently.


Either way, this marijuana thing has momentum, and it's here to stay in spite of Ronald Reagan declaring it "the most dangerous drug in America." This last election saw several other states back east decriminalizing pot in selected counties around the state. Give it another 5 to 10 years and it will be either decriminalized or legal in at least half of America. Pot is firmly entrenched despite the best efforts by law enforcement...may as well find a way to benefit from it. For crying out loud, Bill Gates and New York's Mayor donated a pile of money to promote pot tax. 10 years ago that would've been unheard of.

And really let's be honest...alcohol far exceeds pot in terms of personal and societal damage...and yet alcohol is somehow accepted, almost embraced by our society.

[rockgremlin]

Anyway...I'm right here in the thick of it, so after Jan 1st, I'll report on the cost and quality of the ganja.

That's what you said when it was legalized at first, but I'm still awaiting your "trip report." :)

[Byron]

"trip report." :)

Yeah...in my ignorance, I didn't know that the law had a one year wait until implementation. I though pot shops would be springing up like weeds all over the place.

At first, a couple "clubs" opened up, only to shut down real quick because of pressure. I was going to pay a visit to one here in Denver, but it was gone so fast.

Oh well...there's nothing to slow it down now. Just a month in a half more. It's funny how some of the politicians around here act like this is going to result in the appearance of the black horse of the apocalypse...and they're dems, too. Weird.

I'm actually looking forward to this. The last time I smoked the herb was two years ago while on vacation in Hawaii. I found a two finger bag of excellent ganja laying in the parking lot of the motel I was staying at in Kona...complete with pipe! Score, brudda....

[rockgremlin]

It's funny how some of the politicians around here act like this is going to result in the appearance of the black horse of the apocalypse...and they're dems, too. Weird..

The thing that most people don't realize is that Marijuana is already so prevalent on a mass scale. This isn't something new that is being proposed, it's merely a pragmatic proposal to a problem that has long plagued law enforcement nationwide.

We can continue to demonize it and reward the Mexican cartels with black market profits, or we can grow up and let adults deal with this in a responsible manner, keeping the profits here at home instead of shipping them south of the Rio Grande.

[Byron]

OK...legally lit.

I was among the first several hundred to buy the ganja today. Of the hundreds of dispensaries in this state, only a dozen or so had their act together enough to open for retail today...most, it seems, are right here in Denver. I think that the ones that are only still selling medical are going to wait and hear through the grapevine if there's real money to be made in retail. I've got an opinion on that, which I'll share later...

So I roll into this place this morning about a half hour before they opened at 8am. There were exactly 102 people waiting in line...because I was number 102. They were making a list rather than have a gangbang at the door.

There's a lot of debate in the media about what "negative' effects this will have on communities. Mostly, they portray it as something that thousands, perhaps ten of thousands of people will now get "turned on to" because of ease of access and as a result, lives will be ruined.

I completely disagree with that...as it occurred to me as I stood in line and chatted with those around me that virtually everyone there were dedicated pot smokers. Sure, there were a few that didn't fit the "image", but most had the "hung around with the stoners in high school" look. Certainly no suburban moms or dudes in business suits. I think that some folks that smoked occasionally 20 or more years ago will remain ambivalent about it. I may end up being wrong about that, but I really don't think so.

Lots of news truck and cameras around. In fact, they were so thick in the store it really slowed the whole process down. Everybody was cool, mellow, friendly, talkative, calm, patient. The store I hit today probably ended up serving 300 customers.

Before today, I hadn't smoked weed in two years, and nearly ten years before that. From ages 16 to 25 however, is when a majority of it was consumed. I've always had a take it or leave it attitude about the ganja. I certainly enjoy it, but would never make a habit of it daily...unlike some people I've know, but they were born losers anyway. In other words, smoking it heavily is a really bad idea.

It's expensive. I bought two 1/8 ounces and it cost $120. It's been a long time since I bought weed, but according to the guys in line with me that price is more than double what you pay on the street. That is entirely do to the taxes...it's 43%, not 35. The 10% sales tax is added on the the regular sales tax. The thing about buying retail is that you're guaranteed quality. I really don't think the state is going to be raking in the bucks like they assume...it's just too expensive for most. I suspect the price may come down a bit with competition later on, but with people being able to grow their own now, the "street" is where most of the money is going to stay. Nearly $500 an ounce isn't going to cut it. For those that don't know, what you see in the orange container below is an eight. It cost $65, including tax.

The quality is outstanding. This stuff sure is stinky...you can pick up the smell from 20 feet away. And it's so dense that you can't really break off a chunk with your fingers, you have to use a pair of scissors to cut off a chunk. The tiny piece I smoked today lasted about 4 hours...it's been a while, but that's pretty heavy duty.

For any of you that I may end up hiking with that like to indulge, bear in mind that I may hit you up for a couple bucks...something one doesn't normally do, but those are dollar sighs going up in that smoke!

[rockgremlin]

My boy!! Thanks for the trip report.


That's pretty pricey, and I agree it may go down in price once more retailers come online.

Did you pipe it, bong it, vaporize or otherwise?

[Swimswithtrout]

OK...legally lit. I was among the first several hundred to buy the ganja today.

Now that's a real "Trip Report" !! I haven't partaken since the 70's, through my own choice, but it's nice to see society trying to bring some reality to the Big Business of pot in this country. If the retail price goes down enough, and enough states adopt legal MJ, then a lot of drug cartels are going to have to shift their trade elsewhere !

[rockgremlin]

If the retail price goes down enough, and enough states adopt legal MJ, then a lot of drug cartels are going to have to shift their trade elsewhere !

That's the hope. Look at how much the Mexican cartels are benefiting from the sale of black market alcohol.......errrr....wait...

[Byron]

Did you pipe it, bong it, vaporize or otherwise?

I'm old scool...I use a glass pipe that I bought in Hawaii back in the nineties.

It seems that among the dedicated heads that I met today, that vaporizers and edibles are quite popular. I've never done either...not even pot brownies. I suppose I'll have to check it out.

[Byron]

If the retail price goes down enough, and enough states adopt legal MJ, then a lot of drug cartels are going to have to shift their trade elsewhere !

Yeah...I'm just concerned the price for retail will stay too high. People that smoke only occasionally like me will buy it legit, but anyone that is going to be spending more than $200 bucks a month will certainly look elsewhere...the cartels will just have to up the quality, and they'll still be able to own the market.

Not only that, but there will be a lot more locally grown, too. It's legal to own 6 plants at a time...that's a lot of money for something that you just plant and tend to a bit. Nothing in the world is more attractive than easy money...especially now that it's legal.

I really think the underground market will hold onto the lion's share. We'll just see if the local supply outweighs (pun!) the smuggled and imported.

[Sombeech]

I doubt the price will be going down anytime soon, it'll go up first. Supply and Demand. It's gonna get cray cray up in here, people will be making visits from other states, there will be no shortage of demand. It would be a very bad economical decision to lower the price.

This brings up other questions now, as in what will be the legal penalty if you buy it off the street and you get caught? Do you need to carry your receipt at all times so you can prove where you bought it?

Oh, and expect street prices to go up too.

[rockgremlin]

I doubt the price will be going down anytime soon, it'll go up first. Supply and Demand. It's gonna get cray cray up in here, people will be making visits from other states, there will be no shortage of demand. It would be a very bad economical decision to lower the price.

This brings up other questions now, as in what will be the legal penalty if you buy it off the street and you get caught? Do you need to carry your receipt at all times so you can prove where you bought it?

Oh, and expect street prices to go up too.

All very valid points. Although it shouldn't be an issue if you're caught with it on the street as it is legal in CO everywhere....just so long as you don't smoke it in public.

And people are already driving in from all over the nation to partake. I read several articles that interviewed people from as far as Michigan, Illinois, and Ohio who drove in explicitly to buy Colorado's legal weed. And You gotta know people with friends and family in Colorado are bootlegging it across state lines to share with those who live in less tolerant states.

The genie is now officially out of the bottle, and good luck getting him back inside.

[Byron]

I doubt the price will be going down anytime soon, it'll go up first. Supply and Demand. It's gonna get cray cray up in here, people will be making visits from other states, there will be no shortage of demand. It would be a very bad economical decision to lower the price.

This brings up other questions now, as in what will be the legal penalty if you buy it off the street and you get caught? Do you need to carry your receipt at all times so you can prove where you bought it?

Oh, and expect street prices to go up too.

Yeah Beech...you may turn out to be right on all counts. I suppose we'll see.

In regards to being caught with it...it's not a problem at all, because it's legal! You don't have to carry a receipt or prove otherwise how you obtained it. You are allowed to possess up to one ounce. I don't know if they'd confiscate any more than that amount or not.

I don't need to worry about that, as I'll never have more than an ounce at any time. Heck, it'll probably take me months to smoke up the few thumb sized buds that I have.

And yesterday I had a father (60s) and his son (30s) from eastern Kansas with me as I waited in line. They drove out just for the ganja. Behind me were two guys that live in North Carolina that build mountain bike trails for a living. I asked the security guard where the 100 people before me where from, as he looked at everyone's drivers license. He said about half were from out of state.

[Sombeech]

I just skimmed through am article saying 37 people died from marijuana overdose since yesterday in Colorado. Anybody else hear that??? Or was it another satirical article?

http://dailycurrant.com/2014/01/02/m...-legalization/

Sent from my DROID RAZR using Tapatalk

[Sombeech]

I just skimmed through am article saying 37 people died from marijuana overdose since yesterday in Colorado. Anybody else hear that??? Or was it another satirical article?

http://dailycurrant.com/2014/01/02/m...-legalization/

Sent from my DROID RAZR using Tapatalk

Omg they had me until:

"One of the those victims was 29-year-old Jesse Bruce Pinkman, a former methamphetamine dealer from Albuquerque who had recently moved to Boulder to establish a legal marijuana dispensary."

Sent from my DROID RAZR using Tapatalk

[rockgremlin]

I knew immediately it was satire. NOBODY has ever died from Marijuana overdose.....EVER. This is one of the reasons why it is so highly regarded over alcohol - which we all know kills 1,000's every year.


You'd pass out in a Cheetos and Twinkies eating binge before you ever got to the point where MJ could kill...if that's even physically possible.