Colorado Owes Us A $58 Million Pot Tax Refund
My friends the verdict is in and it turns out the State of Colorado owes us a $58 million pot tax refund. Before you run out to the mailbox looking for the check we will have to go to the polls first.
The Colorado Tax Payers Bill of Rights doesn't allow the state to keep the excess money on a new tax unless they can get approval from the voters. This is when we get to see how fast the government can work.
See the new tax revenue from Marijuana was more than what the formula in the Constitution allows. So according to state law they must refund the excess tax but wait there is a loophole.
Lawmakers must craft a ballot issue and let the voters decide if the state can keep the $58 million or if they must refund it. I don't think this will come as any surprise, but the measure has broad support and should fly through both the House and Senate.
In November Colorado, voters will get to decide if the $58 million is put to work or comes back to the taxpayers but wait there is more.
If the ballot issue passes the state keeps the money and spends most of it on school construction, drug treatment and some will go into the general fund.
If the issue fails then we get a temporary recreational marijuana sales tax cut and the rest will be split up between the growers and taxpayers. That will mean a few extra bucks on next year's tax return, wow.
I know there will be a number of tax hawks who want the money returned to the people but look at it like this.
The money is already out of our hands and the personal return is minimal at best. We are talking about less than $20 per person on a one-time refund.
With $40 million going right to the Colorado school system for construction projects, I say we let the state keep the money and do some good with it.