DOR Taxation web site

Results of Tax Initiatives on Statewide Ballot

Posted: November 6, 2013

 

Amendment 66, Income Tax Increase – Rejected

 

Amendment 66 would have increased the state's income tax to raise funding for public school districts.

 

Colorado's income tax rate remains at a flat 4.63 percent.

 

Proposition AA, New Marijuana Taxes – Approved

 

Proposition AA creates two new taxes on recreational/adult-use marijuana:

 

  • A 15 percent excise tax on all recreational/adult-use marijuana in the state. This tax is paid within the marijuana cultivation to retail chain and is applied to the average wholesale price. The first $40 million in revenue raised annually from this tax will fund the construction of public schools. Revenue above $40 million raised annually will assist the state in regulating and enforcing the marijuana industry.
 
  • A 10 percent sales tax on all retail sales of recreational/adult-use marijuana and marijuana products in the state. This is in addition to Colorado's 2.9 percent state sales tax on tangible personal property and any local and special district sales taxes that may apply. The revenue from this tax will fund state regulation and enforcement of recreational/adult-use marijuana businesses, and a portion of the revenue will be proportionally distributed to local jurisdictions that allow retail marijuana sales.

 

Colorado voters approved the recreational/adult-use of marijuana in 2012 and the state enacted Amendment 64. The Colorado State Legislature placed Proposition AA on the November 2013 statewide ballot by when it approved House Bill 2013-1318.

 

Marijuana Tax Information 

 

Several local governments and special tax districts asked voters to consider sales and use tax rate changes. See Sales Tax Rate Changes Effective Jan. 1, 2014