Colorado will have a special “tax holiday” on Sept. 16 where cannabis consumers won’t have to pay the state’s 10% tax on recreational marijuana, which could lead to a spike in business rivaling traditional cannabis events such as 4/20 or Black Friday.
Transactions will still be subject to normal sales and local taxes. But many consumers will likely look to capitalize on the tax break and stock up, providing a boost for rec shops.
Gov. John Hickenlooper signed the bill on Thursday establishing the one-time tax holiday. The measure also will reportedly lower the special marijuana tax from 10% to 8% starting in 2017, 9News reported.
Colorado cannabis businesses have paid $33 million in retail marijuana sales taxes and $17.4 million in excise taxes from Jan. 1 through March 31, according to state data. That’s up from $10.1 million and $4.74 million, respectively, during the same time frame a year earlier.
