Colorado regulators want to know: How much does marijuana cost? | SummitDaily.com
YOUR AD HERE »

Colorado regulators want to know: How much does marijuana cost?

John Ingold
The Denver Post

Colorado regulators have begun surveying marijuana businesses about the price of pot in an effort to implement a new excise tax that voters passed earlier this month.

The tax places a 15 percent levy on the wholesale price of recreational marijuana when it moves between the grower and the seller.

The challenge, though, is that Colorado’s forthcoming recreational marijuana industry won’t have a true wholesale market for at least the first nine months. Instead, marijuana businesses must initially grow almost everything they sell — meaning the wholesale transactions that will be subject to the excise tax are really just pot transfers between two parts of the same business in which no money is exchanged. Businesses are allowed only a small number of transactions in which they can buy marijuana grown by another business.

To still collect tax on in-house transfers, Colorado regulators will determine an “average market rate” that will apply to all grower-to-seller transfers.

“It’s really difficult to figure out what that’s going to be,” said Meg Collins, the director of the Cannabis Business Alliance, a marijuana trade group.

To read this article in its entirety, click http://www.denverpost.com/marijuana/ci_24523519/colorado-regulators-want-know-how-much-does-marijuana


Support Local Journalism

Support Local Journalism

As a Summit Daily News reader, you make our work possible.

Now more than ever, your financial support is critical to help us keep our communities informed about the evolving coronavirus pandemic and the impact it is having on our residents and businesses. Every contribution, no matter the size, will make a difference.

Your donation will be used exclusively to support quality, local journalism.

For tax deductible donations, click here.
 

Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User