We’ve all heard that Colorado is making millions of dollars in marijuana tax revenue. But we’re so happy we can buy legal weed that we haven’t stopped to think about the money we are contributing to those millions. So how does marijuana tax work? And where can you find the best rates?
Marijuana Tax In Colorado
In the state of Colorado, marijuana is taxed like many other ‘Sin’ taxes (alcohol, cigarettes). That means you might see taxes as high as 20 to 30 percent added to your retail purchase of recreational marijuana. So the final bill on one quarter of an ounce at $90 retail could be as high as $117. That’s an extra $27! If those numbers feel extremely high, you can at least take comfort in knowing that liquor and cigarettes are taxed at similarly high rates. In fact, non-cigarette tobacco is taxed at 40 percent, making the marijuana tax feel like a warm bath. But, even when we’re buying a gram of Infused Death Star or a bag of THC gummies, we still don’t like paying insanely high taxes on our smokeables and edibles. Maybe it will help if we understand why the tax is so… high. Because marijuana can be purchased in a wide variety of forms, all with different concentrations – cigarettes, edibles, liquids or vapors – a basic excise or volume tax doesn’t necessarily make sense. But marijuana taxes, licenses and fees accounted for $60.1 million in just 10 months in 2014. Clearly lawmakers have found a way to profit from our plants and tax our tinctures. Here’s how it all works: Marijuana purchased in Colorado is hit with a 15 percent excise tax, applied to the “average market rate” of the wholesale marijuana. On top of that, Colorado has a 10 percent state tax on retail marijuana sales. That 10 percent state tax is stacked on top of the state sales tax of 2.9 percent and applicable local sales and marijuana taxes. In Boulder, recreational marijuana is subject to an additional 5.9 percent local and specialty taxes. When you add up all of these taxes, a $45 eighth of bud (1/8 oz) can include up to $14.85 in taxes. That’s 33 percent total tax and a $60 charge for $45 of weed!
Lowest Marijuana Tax in Boulder – Only at Karing Kind
At Karing Kind, we’re Boulder’s first recreational dispensary, and we’re proud to offer Boulder’s lowest marijuana tax rate. When you shop at Karing Kind, you’ll see a consistent, industry-low 14.9 percent tax rate on our already incredible prices.
But how are we able to offer the lowest tax rate in the state? To start, we operate in one of Boulder County’s unincorporated communities just beyond North Boulder. Because of our location, Karing Kind isn’t subject to many of the taxes our competitors must pay. That means you save 10 percent compared to other Boulder dispensaries, just for driving 5 minutes North.
And, as if that wasn’t enough, when you become a Karing Kind member you gain access to our Daily Deals and No Tax Tuesday. Here’s how it works:
1. You give us your email
2. We give you incredible discounts for up to 20 percent off your entire order. Every. Single. Week.
Pretty simple right? Shop at Karing Kind. Save money. Repeat.
See infographic for more information on Marijuana Tax in Boulder, CO (infographic by Elson Freelance)