Activists Sue To Block Marijuana Sales Tax In Colorado

COLORADO:  Marijuana legalization advocates are suing to block state and local governments from collecting certain taxes on weed sold in Colorado, out of concern that businesses paying the fees would incriminate themselves at the federal level.

The suit, which addresses the complications that arise from a state legalizing a drug that remains illegal under federal law, was filed in Denver District Court by local attorney Rob Corry. The main goal is to reduce the 29 percent wholesale and retail taxes collected at the state and local levels on sales of recreational marijuana, and specifically block those taxes that apply only to their industry.

Recreational marijuana was legalized in Colorado when voters approved an amendment to the state constitution in November 2012. Legal sales began Jan. 1.

But the lawsuit contends that requiring those involved in Colorado’s legal marijuana industry to pay taxes could get them in trouble with the feds.

 

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