Colorado Proposition AA, Taxes on the Sale of Marijuana (2013)

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Proposition AA
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Type:legislatively-referred state statute
State code:Title 39, Article 28.8
Topic:Taxes
Status:On the ballot
The Colorado Marijuana Retail Marijuana Taxes, Proposition AA, is on the November 5, 2013 ballot in Colorado as an legislatively-referred state statute.[1]

If passed, the measure would implement a 15% excise tax on all marijuana sales in the state. The revenue would be used to fund the construction of schools. The measure would also implement a 10% sales tax. This is in addition to the standard 2.9% state sales tax and any local taxes that may apply. The revenue would be used to fund the regulation and monitoring of the marijuana retail business.[2] The measure was sponsored in the legislature by Rep. Jonathan Singer (D-11) as HB 1318.

Text of measure

The official ballot text reads as follows:[3]

Shall state taxes be increased by $70,000,000 annually in the first full fiscal year and by such amounts as are raised annually thereafter by imposing an excise tax of 15% when unprocessed retail marijuana is first sold or transferred by a retail marijuana cultivation facility with the first $40,000,000 of tax revenues being used for public school capital construction as required by the state constitution, and by imposing an additional sales tax of 10% on the sale of retail marijuana and retail marijuana products with the tax revenues being used to fund the enforcement of regulations on the retail marijuana industry and other costs related to the implementation of the use and regulation of retail marijuana as approved by the voters, with the rate of either or both taxes being allowed to be decreased or increased without further voter approval so long as the rate of either tax does not exceed 15%, and with the resulting tax revenue being allowed to be collected and spent notwithstanding any limitations provided by law?[4]

Support

This bill was sponsored by Rep. Jonathan Singer.[5] The formal campaign in favor the measure is called Yes on Prop AA and is run by the Committee For Responsible Regulation.

Arguments

  • When the bill was being discussed in the legislature, it was reported that Democrats argued that citizens wanted marijuana taxed steeply. They also argued that the high tax rate set by the measure would be in line with other sin taxes such as tobacco taxes and gaming taxes.[2]

Path to the ballot

On April 30, the House passed HB 1318 with a vote of 37 - 27.[6] On May 8, the Senate passed the bill with a vote of 25 - 10.[6]

Similar measures

See also

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