Three state taxes apply to marijuana, but medical and retail marijuana are taxed differently. Both medical and retail marijuana are subject to the 2.9 percent state sales tax, which is applied to most purchases in the state. Tax revenue collected from the sale of marijuana is deposited in two different funds: the Building Excellent Schools Today (BEST) Fund and the Marijuana Tax Cash Fund (MCTF)
Three state taxes apply to marijuana, but medical and retail marijuana are taxed differently. Both medical and retail marijuana are subject to the 2.9 percent state sales tax, which is applied to most purchases in the state. Tax revenue collected from the sale of marijuana is deposited in two different funds: the Building Excellent Schools Today (BEST) Fund and the Marijuana Tax Cash Fund (MCTF)
Colorado's Taxpayer's Bill of Rights (TABOR) requires voter approval of any new taxes. Prior to voter approval, it also requires that voters receive estimates of state spending without new taxes and the new tax revenue. This issue brief provides background information on one of the consequences of actual collections differing from what was provided to voters.
Colorado began receiving MSA payments in 1999. The state legislature has changed how it has used this money over time. Currently, most of the payments goes to programs in the Department of Health Care Policy and Financing and the Department of Public Health and Environment, though other departments receive payments as well.
The final Residential Assessment Rate Study released by the Division of Property Taxation on April 17, 2017 estimates a residential assessment rate of 7.20 percent for 2017 and 2018. The General Assembly must pass a bill before this rate becomes law. Compared with the baseline forecast which was predicated on the December 2016 Legislative Council Staff assessed values forecast, the local share for school finance with a residential assessment rate of 7.20 percent will increase by between $48.7 million and $214.2 million in FY 2017-18. The actual increase in the local share for school finance will depend on the accuracy of the forecast used to estimate the local share.
The final Residential Assessment Rate Study released by the Division of Property Taxation on April 10, 2019 estimates a residential assessment rate of 7.15 percent for 2019 and 2020. The General Assembly must pass a bill before this rate becomes law. The anticipated assessed values associated with this study have a significant impact on the local share for school finance.
