Posted on 03/02/2015 12:21:07 PM PST by Wolfie
Everyone in Colorado may get a pot tax refund
Thanks to Colorado's new pot tax and a quirky state law, residents may get a special one-time tax refund next year.
The total could be about $59 million. That's how much the state expects to collect from taxes on the sale of recreational marijuana, which Colorado legalized last year. Some of that money was slated for schools, but it may go back into taxpayers' pockets instead.
The reason for the refund: Colorado is expected to collect more in total tax revenue than it thought it would this year. That's not permitted in a year the state rolls out a new tax, which this time was the 28% pot tax.
The pot tax itself didn't generate as much money as expected.
But the state is poised to take in $219 million more in total revenue than it thought it would during the current fiscal year, which ends June 30.
Here's what happened.
Whenever a new tax is implemented, a law in Colorado aimed at protecting taxpayers' rights goes into effect.
It requires the state to estimate its total annual tax collections, and that number effectively serves as a cap on the amount of taxes it can keep.
Colorado issued such an estimate when it introduced the pot tax, and now it looks all but certain that total state taxes will surpass that threshold.
"We would have to experience a pretty significant economic downturn between now and June not to be in excess [of the cap]," said Phyllis Resnick, an economist at Colorado State University.
(Excerpt) Read more at money.cnn.com ...
What do you know, legalizing pot DID increase pot use.
Reading comprehension is not your strong suit, is it?
No, it hasn't. It's just being taxed now.
The potheads have been trumpeting this as the legal pot brought in soooo much money to the state they are going to give some back to the taxpayers. They forget to mention the law, or where the excess tax money came from, hint...it wasn’t pot.
They ought to put it in a trust fund for treating and supporting mental illnesses. They’ll need it in a few years.
Bad idea, they’ll just blow it on weed. ;)
Ah, I see it now.
But my contention holds. More people will begin smoking pot, and smoking MORE of it, now that it’s legal. Basic economics.
Just a thought, I suppose state tax on pot will be deductible on your federal income tax, like other state taxes are.
Folks in other states, between successful pillars of your communities, trips to CO are in style. You didn’t know for sure who was getting high before, but you can see it now.
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