This evening Denver’s City Council finally came to agreement on a tax rate for recreational cannabis, which will be set at 3.5%. During the same meeting, the council rejected two proposals to further restrict recreational cannabis outlets.
Under one of the rejected proposals – which failed by one vote – cannabis retail outlets would have been prohibited from ever moving locations. The second rejected proposal – which failed 5 to 8 – would have prohibited recreational cannabis stores from being located within 2,500 feet from a school, a move which some council members argued would be an “effective ban”.
The 3.5% tax rate was purposefully set low, so to not encourage black-market purchased; “It’s important that, when these businesses are just starting out, we put them in a position to succeed because, long-term, we want this to work”, said Council Member Paul Lopez, “We want to make sure we do it the right way.”