Senate Committee May Impose Very High Taxes on Legalized Marijuana in Colorado

It is rather well-known that people rely on illegal sales of marijuana and it is predicted that this would increase even more as taxes on recreational marijuana rise. This week, the US House-Senate Committee is drafting a bill based on the recommendations of a task force that had been submitted a month ago. Taxes on legalized marijuana in Colorado would be determined by this bill and most people are expecting them to be sky high.

Recreational marijuana users may have to wait a while longer before they can get their pot from more vending machines. Some states are already found in certain states but the machines need to be adapted to existing regulations so that they are compliant. And given the pending increase in taxes in Colorado this ambitious plan may not be as easy to pull off as it sounds.

38% total tax rate

All food and beverage sales are taxed including marijuana. The tax amount differs from one county to the next. A total of 38% tax might be awaiting a buyer of legalized marijuana in the Denver area. This comes from a basic 8% food and beverage tax plus 15% special sales tax and on top of that a 15% excise tax.

Marijuana is also legalized in Washington state — the only state other than Colorado where marijuana has the same status. Washington state legalized small amounts of marijuana products only and access is limited to persons 21 years and older. This is called Initiative 502. Washington puts a 25% excise tax on marijuana products.

Washington and Colorado legalized recreational marijuana use in November 2012 and the laws only went into effect in March 2013. Colorado made amendments to its constitution in order to legalize recreational use of marijuana in the state. Colorado also legalized home growing. This activity is not yet legal in Washington.

Medical marijuana vending machines

Medbox is a company based in Hollywood that is providing convenient delivery systems for medical marijuana users. It is one of the most successful consulting firms in the niche. The company has a vision for the future where vending machines fitted with a fingerprint scanner can verify ID and link this to a prescription. The machines will be accessible 24 hours a day.

The machines are now being used but they are strictly behind the counter used for compliance and inventory purposes. The machines made by Medbox are in very high demand particularly in states such as Arizona, Connecticut, and Massachusetts. These states all have existing marijuana regulations.

Wave of the future

The company has stated that it is open to working with state officials from Colorado and Washington offering their expertise for comprehensive guidelines for a legalized marijuana industry. The machines could be used as an effective and efficient tracking tool and for real-time reporting as well.

Federal law still considers possession, sales and growing of marijuana illegal and though the federal government is reviewing state laws in Colorado and Washington, President Barack Obama stated clearly that they have more important things to do.