Marijuana Taxes | File

Sales Taxes
NEWRetail Marijuana Sales Tax Changes Fact Sheet (effective July 1, 2017)

  • State Sales Tax: The state sales tax rate on all tangible personal property, including marijuana, is 2.9%. These taxes are charged on the final consumer purchase price. As of July 1, 2017, retail marijuana and retail marijuana products are exempt from state sales tax. The tax will still apply to medical marijuana and medical marijuana products.
  • Local and Special Districts Tax Rates: See the DR 1002 for current and applicable rates.
  • State Retail Marijuana Sales Tax Rate: There is a 15% retail marijuana sales tax on all sales of retail marijuana and retail marijuana-infused products in the state charged on the final consumer purchase price. This tax rate increased from 10% to 15% on July 1, 2017.

Excise Tax

Excise tax is imposed on the first sale or transfer from a retail marijuana cultivation facility to a retail marijuana store or retail marijuana product manufacturing facility. Medical marijuana is not subject to the 15% state retail marijuana excise tax. Beginning August 9, 2017, sales or transfers between licensed cultivation facilities are exempt from state excise tax.

State Retail Marijuana Excise Tax Rate: Retail marijuana is subject to a 15% excise tax on the Average Market Rate (AMR) or contract price of retail marijuana. The excise tax is based on the average market rate for Bud, Trim, Immature Plant, Wet Whole Plant, Seed, Bud Allocated for Extraction and Trim Allocated for Extraction. One marijuana excise tax return is required for each retail marijuana cultivation facility.

Senate Bill 17-192, emergency Rule 1 CCR 201-18 sections 39-28.8-101 and 39-28.8-302 amended the definition of the AMR, modifying how the excise tax on retail marijuana is calculated, how frequently the AMR is recalculated, and created two new AMR categories and rates, while discontinuing one existing AMR category and rate.

  • Effective August 9, 2017: Affiliated retail marijuana businesses and unaffiliated retail marijuana businesses who do not have a contract price at the time of the sale will calculate their excise tax at 15% of the AMR. Unaffiliated retail marijuana businesses with a contract price at the time of sale will calculate their excise tax at 15% of the contract price.

  • Effective January 1, 2018, Contaminated Retail Marijuana Product Allocated for Extraction will be discontinued and replaced by two new AMR categories and rates, Bud Allocated for Extraction and Trim Allocated for Extraction.

See: Summary of Recent Retail Marijuana Excise Tax Changes (Updated Dec. 15, 2017)