The legal sale of marijuana has given government a nice windfall from sales tax revenue, but taxes should be charged fairly and reasonably — unlike what is set to happen in Adams County.
Adams County in July will begin assessing a 3 percent sales tax on all marijuana sales in the county, including marijuana sold in cities that have a special sales tax on pot.
Those cities — Aurora, Northglenn and Commerce City — only cities have the constitutional authority to tax a single product.
Adams County, however, says “we are simply applying the will of our voters,” who in November approved the tax, and that state law allows “local governments” to impose a tax.
Nevertheless, the Colorado counties seemed to acknowledge they lacked statutory authority to assess taxes on single products when they went to the legislature this year to seek an exemption for pot. But bills introduced both in the Senate and House failed.
One bill died outright, and the sales tax language from a second bill was stripped out.
There is a way to satisfy both sides, however, and the model is the lodger’s tax. State law allows counties to tax lodgers except in municipalities with lodger’s taxes. The same proposition could be applied with marijuana. But it would probably require a statutory change.
Pueblo also could be affected by a judge’s ruling on the lawsuit. That county also has a pot sales tax, but there are no city pot shops and so no inequitable taxation — yet.
Adams County, meanwhile, is approving 10 marijuana businesses in unincorporated areas. The tax revenue would pay for regulation and any residual expenses.
But the county shouldn’t be able to apply that tax in cities with their own pot sales taxes. That additional tax will put the city businesses at a disadvantage.
Commerce City, for example, will have a 7 percent tax. Northglenn and Aurora have 2 percent taxes. Some customers will migrate to stores in unincorporated areas with lower prices.
The cities’ complaints have merit. And the solution should be found next year in the legislature.
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