Lost in the excitement of the Presidential election and results was the fact the California, Nevada and 2 Eastern states legalized recreational marijuana. The tax receipt windfall is about to experience the absence of wind (pardon the pun). On the plus side it may cut down on the number of "travelers" in the state. With a shrinking tax base will Colorado raise the sales tax on marijuana in order to support the administrative infrastructure?
Good question. I myself don't see them doing it, only because there's been a huge surplus of revenue from the sales tax that they didn't adequately make provisions for with the initial bill that was passed so it's not being utilized as it should. I think if they tried to pass a higher tax they'd get slammed with accusations of wasting what's being collected now. It certainly isn't helping the schools like it should, they need to modify the original legislation.
"Now, more than ever, the illusions of division threaten our very existence. We all know the truth: more connects us than separates us. But in times of crisis the wise build bridges, while the foolish build barriers. We must find a way to look after one another as if we were one single tribe.” -King T'Challa, Black Panther
The truth is incontrovertible. Malice may attack it. ignorance may deride it, but in the end, there it is. ~Winston Churchill
If anything, they might be forced to lower the tax. The black market can easily undercut retail suppliers. Due to the states legalizing it, especially California, expect to see much less MJ tourism, at least from the coasts.. I was next door to a retail dispensary in Denver, lots of Texas plates in the lot. I think we will still be a regional MJ tourist destination, Utah, Wyoming, Nebraska, Kansas, Oklahoma and Texas.
Plus Denver will now allow pot coffeehouses, so that will help tourism too.
Thomas Sowell: There are no solutions, just trade-offs.
I agree, that CO will probably lower the tax. It was profitable for the state while it lasted. Unfortunately it does not take very many people to utilize all the social service monies that are available. Also the investment capital has dried up now that California is on the scene. A marijuana coffee house will have a significant upfront expense, i.e. ventilation, not being able to sell food, etc. unless the government relaxes the smoking regulations.
