This article should help you better understand the regulations and taxes that have been implemented in the legal cannabis trade in Colorado. Based out of Crested Butte, CO our rules are regulated differently than Denver, CO or other cities. Interested in learning Colorado Marijuana Laws instead of local regulation and taxes?
Let’s get to the facts.
With the passing of Amendment 64, adults 21 or older in Colorado can legally possess one ounce (28 grams) of marijuana or THC. In addition to cannabis buds (flowers), many concentrates and marijuana edibles as well as cannabis seeds are available for legal consumption in Colorado. There is no type of registration system and you don’t even need to be a resident of Colorado.
As long as you are 21 years or older, you have a constitutional right in Colorado to possess and consume marijuana. Source
How much does recreational marijuana cost to buy in Colorado?
Residents and non-residents have a marijuana purchase limit of up to one ounce of marijuana at any given time.
In the medical marijuana market, ounces run anywhere from $150 to around $300, but marijuana is commonly purchased in smaller amounts. Recreational prices are often 50-100 percent more than medical prices, depending on the shop and the strain. See our dispensary marijuana menu for the different strains we offer. All our bud prices are equal and only vary based on weight.
Does cannabis (marijuana) get taxed?
While medical marijuana purchases only get standard sales tax in most places, there are three kinds of taxes on recreational marijuana in Colorado:
- 15 percent special excise tax when pot moves from the grow room to the storefront
- 10 percent special sales tax
- The standard 2.9 percent state sales tax that applies to sales of all products.
Note: Cities, such as Denver, also have their own general and special sales taxes that apply to recreational marijuana. For a $30 eighth, state taxes will run about $6. The extra taxes in Denver will add on another $2.59.
All together in Denver, that would be nearly 29 percent in taxes!
Where does cannabis revenue get allocated?
The first $40 million generated by the state excise tax will go toward school construction.
Rest of the money will be used to regulate the marijuana stores and put together educational campaigns around cannabis.
What is seed-to-sale tracking and how does it work?
The state built a $1.2 million marijuana-tracking system called MITS, for Marijuana Inventory Tracking Solution.
It works like this: Every plant that a commercial grower sticks in dirt gets a radio-frequency tag that moves with the plant through its life cycle. Once the marijuana is harvested, everything is weighed, then it’s weighed again after drying out and at other points during processing until it’s all packaged up to leave the grow. The packages shipped to the stores can’t weigh more than a pound and they get their own RFID tags. At the shop, store owners are required to weigh their inventory every day. All of this data is entered into MITS.
Stores are also required to have some type of point-of-sale tracking system to chart sales. In theory, every purchase in the point-of-sale system should have a corresponding drop in inventory in the marijuana-tracking system. It’s up to the state’s pot auditors to actually scour the books and make sure it all matches up.
The tracking system does have its limits, though, which is why officials say it is just an enforcement tool, not the whole regime.
Colorado state marijuana law concerns to address
In addition to Colorado state marijuana laws, the Department of Justice has identified eight things it’s most concerned about wanting Colorado federal marijuana regulations and other states to address.
If those concerns are dealt with, the Department of Justice says it is open to the possibility that states with legalized marijuana could replace “an illicit marijuana trade that funds criminal enterprises with a tightly regulated market in which revenues are tracked and accounted for.”
The eight federal priorities are:
- Preventing marijuana distribution to minors
- Preventing money from sales from going to criminal groups
- Preventing the diversion of marijuana from states where it is legal to states where it is illegal
- Preventing criminal groups from using state laws as cover for trafficking of other illegal drugs
- Preventing violence and the use of illegal firearms
- Preventing drugged driving and marijuana-related public health problems
- Preventing the growing of marijuana on public lands
- Preventing marijuana possession or use on federal property
Will the federal government shut down Colorado dispensaries?
It certainly has the option to wreak havoc, but all political signs show that there won’t be significant resistance. President Barack Obama has previously said — to Barbara Walters, no less — that the feds won’t arrest individual marijuana users in Colorado, Washington, and recently Oregon — the the states that have legalized marijuana use for people over 21.
An August Justice Department memo tells federal prosecutors not to make blacking marijuana-legalization laws a priority nor to shut down marijuana stores abiding by state laws and regulations, as long as those rules are robust.
Basically, you walk into a licensed store, show your ID and make your purchase. It’s a lot like a liquor store.← How does purchasing cannabis work?
People with a Colorado ID can buy up to an ounce of marijuana in a single transaction. People with an out-of-state ID can buy up to a quarter ounce per transaction.← Are there limits to how much I can buy?
Yes. The only cap on how much you can buy is the legal possession limit: No one who is not a medical-marijuana patient can possess more than an ounce of marijuana at a time. But that’s up to the customer to abide by.← Can I make multiple purchases on the same day?
You must be 21 and older to buy, possess or use retail marijuana. It is illegal to give or sell retail marijuana to minors.← How old do I have to be to purchase, possess, or consume retail cannabis?
Penalties range from a fine to a possible jail or prison sentence. Colorado State Statutes and Denver Revised Municipal Code spell out the specific penalties for various violations.
Schools, universities, and employers are allowed to put in place their own disciplinary actions for marijuana-related infractions.← What are the consequences if I violate cannabis laws?