In Colorado, only voters can approve tax increases, even when the tax is on a product that could get you thrown in jail in 48 other states.
Proposition AA seeks to establish two taxes on recreational marijuana.
First, it asks for a 10 percent sales tax, which the Legislature could lower or raise to 15 percent. Second, it asks for a 15 percent wholesale excise tax. The taxes would be on top of state and local sales taxes.
Q: Why should I vote for this?
A: Colorado is one of the first two states to legalize marijuana, and state leaders want to make sure they can regulate it well enough to keep it away from kids and neutralize the influence of drug rings.
The state’s medical marijuana regulators ran out of money and failed to do many of their tasks because licensing fees brought in much less cash than anticipated.
Money from the 10 percent sales tax – an estimated $40 million a year – will fund inspectors in the Department of Revenue.
Q: Who is behind this?
A: The Legislature placed Prop AA on the ballot with mostly Democratic votes. Just five of the Legislature’s 43 Republicans voted for it.
Most of the state’s marijuana lobbying groups support it. So do Gov. John Hickenlooper and Attorney General John Suthers.
Q: What are the cons?
A: If taxes are too steep, they could drive marijuana customers back into the black market – defeating the purpose of legalizing the drug and regulating it.
Q: Who is fighting this?
A: A loosely organized campaign called No Over Taxation. It includes some marijuana business owners, pot activists and Rob Corry, a lawyer specializing in marijuana issues.
Q: How will this affect my wallet?
A: Unless you buy recreational marijuana at a retail store, not at all.
The taxes do not apply to medical marijuana, and most jurisdictions in Southwest Colorado are banning or delaying retail pot shops.
The sales tax would raise the price of a $50 purchase of marijuana by $5. Combined with existing city, county and state taxes in Durango, $50 worth of pot would cost $59.40.
The excise tax could add more, if the wholesaler decided to pass the cost along to the retailer and customer.
Growing up to six marijuana plants for personal use would remain a legal and tax-free activity.
Q: How much has each side raised?
A: The campaign on both sides has been on a shoestring budget. A union, United Food and Commercial Workers Local 7, had made the only substantial donation – $10,000 – to the pro-AA campaign as of the beginning of the month.
However, a $1,000-a-head fundraiser with Hickenlooper on Oct. 2 was expected to bring in more cash.
The opposing side had raised less than $2,000 cash, but it has gained lots of attention by giving out free joints at rallies in Denver and Boulder.
Q: Is it true that if I smoke pot, I could help kids learn?
A: The Legislature’s experts predict the sales tax will raise $40 million a year, and the excise tax will raise $27 million.
Amendment 64, which legalized pot, called for an excise tax, with the first $40 million to go to school construction. So yes, up to $40 million a year – but probably less – will go to build or upgrade public schools.
jhanel@durangoherald.com
How and when to vote
Election Day is Nov. 5. Registered voters will receive ballots by mail, which will be sent starting today. If registered voters don’t receive a ballot by Monday, they should call 382-6296.
Ballots must be received at an official location no later than 7 p.m. Nov. 5. Postmarks will not count.
The La Plata County Clerk and Recorder’s Office, 98 Everett St., Suite C, will be open from 8 a.m. to 5 p.m. Monday through Friday from today through Oct. 25 (in addition to the hours listed below).
These polling stations will be open from 8 a.m. to 5 p.m. Oct. 28-31 and Nov. 1 and 4; from 10 a.m. to 2 p.m. Nov. 2; and from 7 a.m. to 7 p.m. Nov. 5 (election day):
Clerk and Recorder’s Office, 98 Everett St.
The county clerk’s office at the La Plata County Fairgrounds, 2500 Main Ave., from 8 a.m. to 5 p.m. Oct. 28-31.
Bayfield Town Hall, 1199 Bayfield Parkway in Bayfield,
Several ballot drop-off locations will be throughout the county.
For more information, visit laplatacountyclerk.org and click “elections” on the left side.
Herald Staff
