On September 16th, recreational cannabis will be sold tax free throughout the State of Colorado. The one day “tax holiday” was signed into law by Governor Hickenlooper in June.
The one day tax-break is due to the Colorado’s Taxpayer’s Bill of Rights. The law requires voter approval for new taxes, and mandates that any new taxes be waived and refunded if overall state collections exceed projections given to voters when they approve a new tax.
In this instance, overall tax collections this year in Colorado exceeded projections, leading lawmakers to decide on a one-day tax waiver.
It’s estimated that ounces of cannabis will cost up to $50 less during the tax-break.
According to Colorado’s Department of Revenue, the state garnered over $60 million in taxes and fees from legal cannabis sales in the first half of the year.