Colorado recreational marijuana prices may rise if voters OK tax hike

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A ballot question is going before Colorado voters in November that, if successful, would raise the state taxes on recreational marijuana products and potentially create a new barrier for adult-use sales.

The measure, Initiative 25 – also called the Learning Enrichment and Academic Progress Program Initiative (LEAP) – was approved for the Nov. 2 election by the secretary of state this week, the Colorado Sun reported.

If voters approve the measure to help fund education, a new 3% sales tax would go into effect Jan. 1, 2022, which would increase to 5% by January 2024.

The state already has a 15% excise tax and a 15% sales tax for adult-use marijuana products.

The tax change would have no effect on medical marijuana prices, however. MMJ products are subject to a 2.9% sales tax but not the 15% excise tax or the 15% sales tax levied on rec cannabis.