HB 18-1062

House Bill 18-1062 in Colorado changes the sales tax on retail marijuana. It removes a state exemption that previously allowed local governments to exclude marijuana sales from their sales taxes, and it reduces the statewide sales tax rate for marijuana from 15% to 12.1%. This means that starting March 1, 2018, retail marijuana will be subject to both the new lower state sales tax and any applicable local sales taxes. The bill has been signed into law, so these changes are now in effect.

Official Summary

On March 1, 2018, the bill repeals the general state sales tax exemption for sales of retail marijuana and reduces the retail marijuana sales tax by 2.9% from 15% to 12.1%. With the repeal of the state exemption, sales of retail marijuana will automatically be subject to the sales tax levied by a limited purpose governmental entity whose sales tax authority is the same as the state. Currently, statutory municipalities and counties are authorized to create an exemption for sales of retail marijuana that are exempt from the state general sales tax. Along with the repeal of the state exemption, this contingent authority is repealed. (Note: This summary applies to this bill as introduced.) , Read More