(1)(a) (I) In addition to the tax
imposed pursuant to part 1 of article 26 of this title 39 and the sales tax imposed by
a local government pursuant to title 29, 30, 31, or 32, but except as otherwise set
forth in subsections (1)(a)(II) and (1)(a)(III) of this section, beginning January 1, 2014,
and through June 30, 2017, there is imposed upon all sales of retail marijuana and
retail marijuana products by a retailer a tax at the rate of ten percent of the amount
of the sale. Beginning July 1, 2017, there is imposed upon all sales of retail
marijuana and retail marijuana products by a retailer a tax at the rate of fifteen
percent of the amount of the sale. The tax imposed by this section is computed in
accordance with schedules or forms prescribed by the executive director of the
Free access — add to your briefcase to read the full text and ask questions with AI
(1) (a) (I) In addition to the tax
imposed pursuant to part 1 of article 26 of this title 39 and the sales tax imposed by
a local government pursuant to title 29, 30, 31, or 32, but except as otherwise set
forth in subsections (1)(a)(II) and (1)(a)(III) of this section, beginning January 1, 2014,
and through June 30, 2017, there is imposed upon all sales of retail marijuana and
retail marijuana products by a retailer a tax at the rate of ten percent of the amount
of the sale. Beginning July 1, 2017, there is imposed upon all sales of retail
marijuana and retail marijuana products by a retailer a tax at the rate of fifteen
percent of the amount of the sale. The tax imposed by this section is computed in
accordance with schedules or forms prescribed by the executive director of the
department; except that a retail marijuana store is not allowed to retain any portion
of the retail marijuana sales tax collected pursuant to this part 2 to cover the
expenses of collecting and remitting the tax. The executive director may
promulgate rules to implement this section.
(II) If, for the fiscal year 2014-15, fiscal year spending is greater than twelve
billion eighty million dollars or if the revenue from retail marijuana taxes is greater
than sixty-seven million dollars, then on September 16, 2015, the rate of the tax
imposed under subparagraph (I) of this paragraph (a) is reduced as specified in
section 20 (3)(c) of article X of the state constitution. On September 17, 2015, in
accordance with paragraph (b) of this subsection (1) and the authority that the
voters conferred through their approval of proposition AA at the November 2013
election, the rate is increased back to ten percent.
(III) (A) If the ballot issue referred to the voters in accordance with section
39-28.8-603 (1) is placed on the November 3, 2015, ballot and a majority of the
electors voting thereon vote No/Against, then on January 1, 2016, the rate of the
tax imposed under subparagraph (I) of this paragraph (a) is reduced to one-tenth of
one percent as a method to refund revenues that exceed an estimate included in
the ballot information booklet for proposition AA.
(B) If the retail marijuana sales tax rate is reduced in accordance with sub-subparagraph (A) of this subparagraph (III), then on March 3, 2016, and on the third
business day of the next three months thereafter, if necessary, the executive
director of the department shall determine whether the amount refunded to that
date through the rate reduction is greater than or equal to the required retail
marijuana sales tax refund. If so, then the rate reduction expires on the fifth day
after the determination. If, as of June 3, 2016, the amount refunded through the rate
reduction is still less than the required retail marijuana sales tax refund, then the
rate reduction expires on June 30, 2016. The executive director shall estimate the
amount of the refund for the time included in a determination for which the actual
revenue is unknown.
(C) On the day after the temporary retail marijuana rate reduction expires in
accordance with sub-subparagraph (B) of this subparagraph (III), the retail
marijuana tax rate is increased back to ten percent.
(D) As used in this subparagraph (III), required retail marijuana sales tax
refund means an amount equal to the total proposition AA blue book refund
amount calculated under section 39-28.8-602 (1) minus the sum of the amounts
refunded through section 39-28.8-605 (3) and (4).
(b) The maximum tax rate that may be imposed pursuant to this section is
fifteen percent. At any time on or after January 1, 2014, the general assembly may,
by a bill enacted by the general assembly and that becomes law:
(I) Establish a tax rate to be imposed pursuant to this subsection (1) that is
lower than fifteen percent of the sale of retail marijuana or retail marijuana
products; or
(II) After establishing a tax rate that is lower than fifteen percent pursuant to
subparagraph (I) of this paragraph (b), increase the tax rate to be imposed pursuant
to this subsection (1); except that, in no event shall the general assembly increase
the tax rate above fifteen percent of the sale of retail marijuana or retail marijuana
products. Notwithstanding any other provision of law, an increase in the tax rate
pursuant to this subparagraph (II) shall not require voter approval subsequent to
the voter approval required pursuant to part 4 of this article.
(2) Nothing in this section shall be construed to impose a tax on the sale of
marijuana or marijuana products to any person by a medical marijuana center.
(3) Repealed.