Pot Is Making Colorado So Much Money They Literally Have To Give Some Back To Residents

[wildbilln864]

Source: DENVER (AP)

" DENVER (AP) -- Colorado's marijuana experiment was designed to raise revenue for the state and its schools, but a state law may put some of the tax money directly into residents' pockets, causing quite a headache for lawmakers.

The state constitution limits how much tax money the state can take in before it has to give some back. That means Coloradans may each get their own cut of the $50 million in recreational pot taxes collected in the first year of legal weed. It's a situation so bizarre that it's gotten Republicans and Democrats, for once, to agree on a tax issue.

Even some pot shoppers are surprised Colorado may not keep the taxes that were promised to go toward school construction when voters legalized marijuana in 2012."

Read more: http://www.hightimes.com/read/pot-making-colorado-so-much-money-they-literally-have-give-some-back-residents

[99th_Monkey]

1. Imagine that.

A state votes to 'do the right thing' re: ending war on pot,
and they are handsomely rewarded for their awesomeness.

Things like this make me happy to be alive.

[aint_no_life_nowhere]

2. Great story - voters in other states need to know of this

[DeSwiss]

3. K&R

''It's a situation so bizarre that it's gotten Republicans and Democrats, for once, to agree on a tax issue.''

- True Democratic/Republican Bi-partisanship: ''Never give them their money back!''

[Aerows]

16. You and I obviously

read between the lines there. That was the first thing I thought of.

Democrats and Republicans both saying: "Holy cow, we have a budget surplus. How quickly can we sink the savings into something that will screw the people of Colorado and pad my portfolio?"

[progree]

17. There is a budget surplus, but the marijuana tax revenue is only a small part of it

http://www.thedenverchannel.com/news/politics/hickenlooper-to-unveil-next-years-colorado-budget-and-explain-state-plans-for-surplus_11032014

and the budget surplus isn't anything new - last year they had a 1.1 B$ surplus, and in March they forecast a 257 M$ surplus (Google: Colorado budget surplus).

To give an idea of the scale of $50 million marijuana tax revenue, the governor's proposed budget is $26.8 billion -- the $50 million marijuana tax revenue is about 0.17% of that.

The title of the OP is misleading (coming from a High Times article) -- please see post 13 about that http://www.democraticunderground.com/10141002815#post13 .

[CentralMass]

18. Exactly.

[AllyCat]

32. That's what I thought too.

[Telcontar]

34. Agree

[Newest Reality]

4. Of course!

That's not a surprise at all. Any advocate or sensible person would have predicted it.

The same applies to hemp. It has been lurking in the shadow of the big industrial concerns for decades. When we shine the sunlight of fact and reason upon it, it can emerge and grow as a rapidly renewable resource for the 21st-century, in so many ways it is hard to count them all. Talk about environmentally friendly and a great boon to sustainability.

the PWB don't like it. Part of the reason that hemp and its wonderful cousin, Cannabis have been demonized and overshadowed by capitalistic greed is that it is, and has been, a wonderful and natural gift from nature to mankind.

We might want to get behind this wonderful plant collectively and look into the why and how of its demonetization, as a medicinal cure, a recreation and a valuable workhorse that proves to be an important resource in our quest for emergence from a dominant and now cancerous paradigm of total annihilation for the sake of profit.

Go Hemp! Go Cannabis. Rah, rah, rah.

[former9thward]

5. That is "High Times"

Not exactly unbiased.

Another source:

Colorado's missing marijuana taxes


Voters legalized retail marijuana (pot for everyone, not just medical patients) in 2012. And they were told the state would pull in $33.5 million from two new taxes in the first six months of 2014. It turns out, the projections were way off. Here's why

Pot smokers are still buying on the black market: The state thought more people would migrate out of the black market. But only 60% of people who want pot in Colorado this year will buy it through legal channels, according to an estimate from the Marijuana Policy Group.

One big reason: Legal pot costs a lot more than illegal pot -- mostly because of taxes and fees.
Legal retail marijuana is taxed more than 27%, so it's easily cheaper on the black market.
And there's more than one way smokers are scoring pot without paying taxes.

Some are likely procuring it under the table from medical marijuana patients who buy it on the up-and-up and then resell it illegally -- depriving the state of tax revenue.

http://money.cnn.com/2014/09/02/news/economy/marijuana-taxes-colorado/
Plus, any Coloradan over 21 can grow up to six plants for personal use. If they are selling it on the black market, that's even more tax revenue the state's missing out on.

[eShirl]

7. That is "CNN"

They're not unbiased, either.

anywho, carry on

[NoGOPZone]

10. In fact, it's an AP article picked up by High Times

Here's the same article on the website of a local affiliate of CBS.

http://www.wowktv.com/story/27954876/tax-law-quirk-means-pot-may-pay-off-for-coloradans-literally

[progree]

11. The story is much more nuanced than the High Times title implies (likewise the OP's excerpts)

First, here it is from the source, the ap.org website itself:

http://hosted.ap.org/dynamic/stories/U/US_MARIJUANA_TAXES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT

In a quick read, its exactly the same story as the one in High Times -- no more and no less. Although AP's title is different,

"Tax Law Quirk Means Pot May Pay Off For Coloradans Literally"

That said, people should read the story in full, for example,

Even some pot shoppers are surprised [font color=red]Colorado may not keep the taxes that were promised to go toward school construction[/font] when voters legalized marijuana in 2012.

Legal weed has collided with the tax limitation movement because a 1992 voter-approved constitutional amendment called the Taxpayers' Bill of Rights requires all new taxes to go before voters.

The amendment also requires Colorado to pay back taxpayers when the state collects more than what's permitted by a formula based on inflation and population growth.

... Republicans concede that marijuana is throwing them off their usual position of wanting tax dollars returned to taxpayers. But they also tend to say that marijuana should pay for itself - that general taxes shouldn't pay for things like increased drug education and better training for police officers to identify stoned drivers. ((unfortunately the article nowhere indicates if those costs are anywhere near, more, or less, than the $50 million taxes collected, or to be collected year after year in the future. And of course RepubliCONs have a way of twisting things -- those costs could be, say $10 million in the first year, and $2 million annually thereafter, and RepubliCONs would still make it sound like its not paying for itself -- they tend to leave out inconvenient information --Progree))

... After legalizing marijuana in 2012, Colorado voters returned to the polls the following year and approved a 15 percent excise tax on pot for the schools and an additional 10 percent sales tax for lawmakers to spend.

[font color = red]Voters were told those taxes would generate about $70 million in the first year. The state now believes it will rake in about $50 million.[/font]

But because the economy is improving and other tax collections are growing faster, Colorado is obligated to give back much of what it has collected.

[freeplessinseattle]

6. Damn, why is my state's way so lame in so many ways!

It's almost embarrassing.

But I am enjoying the low street prices on a wide variety due to the sudden glut, so no complaints there!

[marlakay]

9. I am just enjoying that it's legal

I always thought it was dumb to say it's like heroin. My dad and I use to have arguments in the early 70's about it because he was a heavy drinker, I kept saying that was worse.

He died at 75 while my mom who just drinks wine going strong at 87.

[TeamPooka]

8. Prohibition is a failed public policy, again. nt

[jtuck004]

12. I am surprised that WA state is so incompetent at this.

The best advocate for medical marijuana on the east side of the state is a jack-booted gun-carrying thug of a republican state representative. The state Ds are worse than useless, maybe wanting to appear tough, or maybe just ignorant. And I don't forget that when it comes time to support them.

On the same day the budget bill changed how they enforce mmj at a federal level, a community here declared a public health emergency to stop the granting of permits for mmj stores.

These idiots still think they can stop this without making 5 gallon buckets and light bulbs illegal.

[progree]

13. Late Breaking News forum rules requiring keeping the original title

You say the source is the AP (Associated Press). Well, the title of the Associated Press story is, "Tax Law Quirk Means Pot May Pay Off For Coloradans Literally"

http://hosted.ap.org/dynamic/stories/U/US_MARIJUANA_TAXES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT

You are using the misleadingly titled High Times title: "Pot Is Making Colorado So Much Money They Literally Have To Give Some Back To Residents". (Admittedly the AP title is somewhat problematical too).

Please see post 11 for why it is misleading -- in short, a quirk in the law regarding new taxes requires that Colorado not keep it all. So that taxes promised to the schools may instead have to be returned to the taxpayers instead of being spent on the schools. And that the $50 million taxes collected is only about 70% of the $70 million that the voters were told the taxes would generate.

(On the other hand, $50 million is a heck of a lot better than nothing, I'm not saying recreational marijuana is a "bust" fiscally)

[BlancheSplanchnik]

14. heh!

[NaturalHigh]

15. As much pot as Oklahomans grow...

it would be cool if we could get some sort of deal like this. Of course that would require some common sense from our elected officials.

[joshcryer]

19. Natural solution is to cut the pot tax.

But knowing how these things work out it'll be diverted into new programs, some which may or may not be necessary. But it's OK. I'm fine with whatever happens.

[frazzled]

20. $7.63 that could go to schools or services?

Look, that's a shitty state amendment (the "Taxpayer's Bill of Rights that refunds citizens 'when the state collects more than what's permitted by a formula based on inflation and population growth.'"

Read more: http://www.rollingstone.com/culture/news/colorado-may-pay-residents-over-excess-marijuana-revenue-20150130#ixzz3QUodgMIt

We shouldn't be applauding this. It's a conservative/libertarian balanced-budgety kind of thing that limits government. And the $50 million Colorado earned isn't all that much. And we shouldn't confuse tax revenue on items or services with "good." My state, for example, made "only" (it was far short of expectations) $212 million on cigarette taxes in 2013. It made $168 million in revenue from video gambling in 2014. Both are regressive. The state income tax remains highly unjust--a flat rate that rewards the wealthy.

Let's keep the discussion about pot and taxes separate.

[progree]

21. That Rolling Stone summary of the AP article is way different than the AP article!

Please see post#11 and #13.

At least the High Times article included the entire AP article -- except they put a different and very misleading headline on it. They collected $50 million in taxes, compared to $70 million that was expected.

And in #17 I mention that the marijuana tax revenue is about 0.17% of the state's budget (whereas when one reads the High Times headline or the Rolling Stone article, one would get the impression that it was a monster hit of revenue that is single-handedly driving the state's finances into a super-surplus).

That said, it's still a considerable fiscal success. And I agree that's not necessarily a good thing, as it comes from a very regressive tax. (and a big one -- the article says the tax rate on pot is 30%).

[Crowman1979]

22. How about having everyone with a single income below $50k or $100k married pay no state income tax?

Of course that requires logic. Which the Rethuglican controlled state senate has none of.

[Johnny Rash]

23. Smoking POT doesn't affect memory, but POLITIC will!

Just ask a Politician about his/her Elector Promise(s), if you don't believe me.

[Taitertots]

24. Shifting the tax burden onto the working class with regressive taxes

Why should we cheer for this?

[Spooky69]

25. How come it took so long for someone to say this . . . .

making the working person pay indeed .

[Taitertots]

26. If I had to guess. It is because non-smokers just don't care...

As long as they don't have to pay it.

I can't imagine why a progressive marijuana smoker would support regressive non-pigouvian taxes on marijuana.

[packman]

27. Are there not roads to be built?

Airports to be constructed, dams to be raised? Shit, build a subway, put heating coils under all the highways to keep them snow and ice free, build homes for the homeless, food for the hungry, free college, free medical care, drug clinics, research hemp --- hard to believe they can't come up with ways to spend that money to benefit all Coloradians (?). Make the state a model state for all the rest of the nation to admire.

[Spooky69]

28. Talk about short sighted . . . .

To think the Colorado example of pot "legalization" is a good model is silly on many levels .

Recreational marijuana legalization is an issue about the FREEDOM to make our own choices not the right to pay taxes for something we have been doing just fine for the past 10,000 years plus without any help or interference .
Our government has been throwing us in jail for THE PAST HUNDRED YEARS on the premise that marijuana use is dangerous, will turn us into vandals, rapist's, and lunatics, and is a threat to the public health and safety . NOW ALL OF A SUDDEN, its ok to smoke weed as long as you let uncle have a little bit of the money . So the motivation is only about money and certainly not about freedom .
Here we are, as if we never ever learn, all excited that the state is collecting another "vice tax" as if we dont pay enough already . We've allowed the politicians that run the state to once again gloss over the fact that we pay enough taxes already and the need for additional monies is due to intentional mismanagement, incompetence, and just plain thievery. Yet, were falling all over ourselves to celebrate a "surplus" .
But the thing that really makes me laugh is how thousands of pot heads, who have been getting busted for smoking flowers, are now running down to their local government sanctioned pot store and showing their ID's to the very same government that was throwing them in jail only just yesterday .

I dont write very well but Im sure yall can get my point - - - these pot laws suck.

For me the only real pot law would be something simple that would contain one sentence only.
The bill would read as follows : "The state of (your state here) will no longer arrest, prosecute, or jail a citizen for manufacturing, selling, or using of marijuana and / or marijuana by-products."

pretty simple huh . . ..

[demigoddess]

29. short sighted is what our country is these days

and simple is something they are not. and it gets worse every day.

[pathansen]

30. This may be great incentive for other states to do the same thing

[YOHABLO]

31. The problem is that the price of marijuana will skyrocket and corporate America >>>

will ruin it's quality. They will begin to add carcinogenic materials to addict everyone .. as they did with tobacco. I would love to see pot have organic non-chemical restrictions. Otherwise, people will just grow it in their basements. Once corporate entities get hold of something they ALWAYS try to screw the consumer. ALWAYS!!!

[quadrature]

33. the $$$ surge won't last forever

eventually,
people will find out they
can grow their own.

[BadGimp]

35. Up in smoke