Colorado Rec Industry to Benefit From Marijuana ‘Tax Holiday’

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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.

The move stems from an obscure provision in the state’s laws and likely won’t happen again, according to a report by 9News in Denver.

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.