Colo. Approves Pot Tax That Could Net $70M In First Year

Law360, New York (November 5, 2013, 10:57 PM EST) -- Colorado voters on Tuesday resoundingly passed Proposition AA, a law that allows the state to tax the sale of recreational marijuana with a 15 percent excise tax and a 10 percent sales tax, resulting in expected tax revenues of $70 million within the first year.

Revenues from the excise tax will be used to fund the construction of Colorado schools, while sales tax revenues will be used to establish a regulatory framework to monitor retail marijuana businesses. The new taxes apply only to the sale of...
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