How Much Are Cannabis Taxes in Colorado? What Is Marijuana Tax Revenue Used For?
Cannabis industry is one of the most highly taxed in the country. So how much tax do you pay and where does it go?
There is a variety of taxes imposed on cannabis flower and infused products in Colorado. Today we will try to give you an outline of how much tax you pay and what it is spent on.
Colorado allows the sale of recreational and medical marijuana, and the main difference between these two is the tax you pay. Medical products also come in higher dosage and medical marijuana card holders have a higher limit on purchases and possession but the products are essentially the same.
Commonly, the prices provided in the dispensaries are pre-tax, as is the case with our online menu. However, for your convenience you will be able to see your total once you add products to our cart in our online order menu. Make sure to pick your location in the dropdown before you begin shopping.
What is Colorado recreational tax rate? How much is tax on cannabis in Denver?
In short, if you are shopping for cannabis in Colorado, expect to pay anywhere from 20 to 28% total tax on recreational marijuana and infused products.
The taxes on recreational cannabis in Colorado include state sales tax, Colorado special tax, Colorado retail marijuana sales tax, as well as local city and county retail marijuana sales tax which varies by location. You will be provided a detailed breakdown of the taxes paid on your receipt.
Is medical cannabis taxed in Colorado?
If you are a holder of a Colorado medical marijuana card, you can shop at medical dispensaries. The total tax on medical cannabis in Colorado comes to about 7-9%.
It is comprised of Colorado special tax, city and county sales tax (recreational cannabis is exempt), and Colorado medical sales tax.
As is the case with recreational sale, you will be able to see the details on the receipt.
Where does marijuana tax money go in Colorado? Where does Colorado marijuana tax go?
Let’s look at the recent numbers and where does it all come from. The money comes from various taxes mentioned above as well as licensing fees.
In 2021, the cannabis revenue in Colorado was $423M, a new record compared to $387M the year before that while tax and fee revenue was over $2B and $12B throughout the time since cannabis legalization.
According to Colorado General Assembly, 10% of the revenue from the 15% tax on marijuana retail sales is allocated to local governments in accordance with the percentage of marijuana retail sales occurring within city and county boundaries. The remaining 90%:
71.85% to the Marijuana Tax Cash Fund;
15.56% to the General Fund; and
12.59% to the State Public School Fund.
Revenue in the Marijuana Tax Cash Fund is spent on health care, health education, substance abuse prevention and treatment programs, and law enforcement. The marijuana excise tax revenue is credited to the Building Excellent Schools Today (BEST) Fund used to renew or replace deteriorating public schools.
We hope you found the answers to your questions here ans stay tuned for more by subscribing to our newsletter.
As the snow melts and the temperatures start to rise, Colorado is the perfect destination for spring tourism.
Embark on an unforgettable journey through the Pacific Northwest on a Columbia and Snake Rivers Cruise, following the historic Lewis and Clark Expedition.
We are excited to announce the opening of our newest dispensary on Hayden Island in Portland, Oregon.
Cannabis is a wonderful way to relax and unwind after a long day, but when consumption gets out of control, it can lead to negative consequences.
The relationship between music and cannabis has a lengthy and closely connected past, with numerous individuals viewing the two as complementary.
Golf is a popular sport in Colorado, with its stunning views and challenging courses that attract players from all over the world.
Cannabis has a long and complex history, dating back centuries to its first recorded use in ancient civilizations.
With the legalization of cannabis in more and more states, the cannabis industry is booming.
Cannabis is becoming an increasingly popular wellness tool, with many people using it to aid in meditation, relaxation, and even enhancing their workout routines.
Stock up on premium strains at a great price
March sale of your favorite edibles
Get the best price on vape cartridges
Huge discount on Silver Stem prerolls! Get them now.
Sign up and save! Get a special discount just for joining.
Get a discount on your purchase to enjoy the festival!
Get a great deal on half ounces of select premium strains!
Get it now at select Silver Stem locations!
Try 15 strains and get a penny ounce as a reward!
Get a permanent discount as a senior citizen!