The public will have an opportunity to weigh in on marijuana taxes Tuesday.
The Durango City Council may ask residents to approve new taxes on marijuana during the November election, and the council plans to vote Tuesday on whether to place questions on the ballot.
New tax collections could fund city construction and equipment, city documents said.
Voters could increase sales taxes on retail and medical marijuana by 5 percent. There are 10 retail marijuana shops and five medical marijuana shops in town, according to city documents.
Residents could also be asked to approve a 5 percent excise tax on marijuana grow operations and infused product manufacturing businesses.
There is one medical marijuana grow facility in the city; the city does not allow infused product manufacturing or retail marijuana grow facilities.
Marijuana buyers pay a special 15 percent state sales tax on top of city and county sales taxes that apply to all goods. The state also taxes wholesale marijuana at 15 percent. Even through marijuana is not legal under federal law, marijuana businesses pay federal income taxes ranging from 60 to 70 percent.
It’s fairly common for towns in Colorado that allow marijuana sales to charge an additional tax. Of the 69 towns that allow marijuana, 49 approved additional taxes on it, according to city documents.
The public hearing will be held at 6:30 p.m. Tuesday at Durango City Hall, 949 East Second Ave.