Tax law quirk means marijuana may pay off for Colorado residents
DENVER (AP) — Colorado’s marijuana experiment was designed to raise tax revenue for the state and its schools, but a state law may give some of the money directly to residents.
The voter-approved constitutional amendment requires Colorado to pay back taxpayers when the state collects more than the limit in a formula based on inflation and population growth.
But lawmakers don’t want to put pot taxes back into people’s pockets.
Republicans usually want tax dollars returned to taxpayers, but they say marijuana should pay for itself, and general taxes shouldn’t pay for things like increased drug education.
Lawmakers might ask voters to exempt pot taxes from the refund requirement. Otherwise, Colorado would have to refund more than $30 million of the $50 million in recreational pot taxes it has collected.
Lawmakers would decide if the money would go to all taxpayers or just people who bought pot.