Pot tax not coming in.

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Tommy Tar
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Pot tax not coming in.

Postby Tommy Tar » Tue Sep 02, 2014 6:32 am

http://money.cnn.com/2014/09/02/news/ec ... l?iid=Lead

Colorado is missing $21.5 million in pot taxes.

Voters legalized retail marijuana (pot for everyone, not just medical patients) in 2012. And they were told the state would pull in $33.5 million from two new taxes in the first six months of 2014. It turns out, the projections were way off. Here's why.

Pot smokers are still buying on the black market: The state thought more people would migrate out of the black market. But only 60% of people who want pot in Colorado this year will buy it through legal channels, according to an estimate from the Marijuana Policy Group.

One big reason: Legal pot costs a lot more than illegal pot -- mostly because of taxes and fees.
Legal retail marijuana is taxed more than 27%, so it's easily cheaper on the black market.
And there's more than one way smokers are scoring pot without paying taxes.

Some are likely procuring it under the table from medical marijuana patients who buy it on the up-and-up and then resell it illegally -- depriving the state of tax revenue.
Plus, any Coloradan over 21 can grow up to six plants for personal use. If they are selling it on the black market, that's even more tax revenue the state's missing out on. <snip>

So people are still buying pot from the bad guys and all that tax money that was going to fund everything under the sun is not coming in. :lol: Now what are the pot heads going to say? :iknow:


‘I Haven’t Seen Democrats This Mad Since We Freed the Slaves!’..... Rob Schneider.

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John Q. Public
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Re: Pot tax not coming in.

Postby John Q. Public » Tue Sep 02, 2014 6:58 am

They're going to say, "Dude! .............................................................. Hahahahahaha. Whoa. I forgot what I was gonna say, man."

Colorado Legislature, Marketing 101. Marketing 101, Colorado Legislature.
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Parrotpaul
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Re: Pot tax not coming in.

Postby Parrotpaul » Tue Sep 02, 2014 8:10 am

Basic Stonerology 101...if weed is cheaper on the streets than in the stores, the streets will rule. DUH!!!! The coops and the legal weed shops will need to drop prices, or the "regulars" will continue to buy black market weed. The stuff isn't all that hard to grow, and until and unless buying legal weed becomes something akin to dropping into a smoke shop years ago for a pack of cigs, the street will continue to be an active and still very profitable venue.
"I think I may say that of all the men we meet with, nine parts of ten are what they are, good or evil, useful or not, by their education." John Locke

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John Q. Public
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Re: Pot tax not coming in.

Postby John Q. Public » Tue Sep 02, 2014 8:33 am

Or is it the pot shops that need to adjust their margins? I don't know how the business is these days, but back in the day, drugs had a 100% markup at each step because dealers are taking a much bigger risk than other businessmen. Legal pot shops aren't taking that risk. Maybe they're the ones who need to make the adjustment.
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MDDad
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Re: Pot tax not coming in.

Postby MDDad » Tue Sep 02, 2014 8:51 am

Now if the Colorado legislature would just fund a bullet train between two points nobody ever visits, they could give our own Sacramento crowd a real run for their money as dumbest lawmakers in the country.

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Troglodyte
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Re: Pot tax not coming in.

Postby Troglodyte » Tue Sep 02, 2014 9:31 am

The state is doing business career bureaucrat style. As usual..
Anyone with a bit of business sense would drop the tax for a year or so until they drove the street dealers out of business and then raise taxes. Sanction a few legal pot farms and place the tax on the raw product sold to the stores, like the do with tobacco.. Hire some retired MBAs and put them in charge of the bureaus and get rid of the time serving paper pushers running the state.
I don't suffer from any mental illnesses.. I enjoy them..

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Fordama
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Re: Pot tax not coming in.

Postby Fordama » Tue Sep 02, 2014 11:00 am

Because the banks won't take the money (because selling pot is still against Federal law so they won't touch it) it is still a 100% cash business.

I have a feeling that not all the sales are showing up on the books.

Fordama
This country of the United States was not built by those who waited and rested and wished to look behind them.---JFK

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Tommy Tar
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Re: Pot tax not coming in.

Postby Tommy Tar » Wed Sep 03, 2014 7:06 am

The two biggest selling points the pro recreational pot smokers used to pass this bill was than it would put an end to the Mexican drug cartels selling pot and the tax collected would be a huge win fall for the state. So far they are 0-2. If other pro recreational pot smokers groups want to do this in their states they better fix this fast.
‘I Haven’t Seen Democrats This Mad Since We Freed the Slaves!’..... Rob Schneider.

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John Q. Public
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Re: Pot tax not coming in.

Postby John Q. Public » Wed Sep 03, 2014 7:54 am

Hopefully the lesson they learn is that putting a 27% tax on anything is only inviting a black market and heavy use of the "No Sale" button on the cash registers.
Don't look at me, I just work here.

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