Cannabis Taxes Have Not Solved Colorado's Budget Woes
Jean Smith-Gonnell, a partner with Troutman Pepper, was quoted in the December 11, 2023 CPR News article, " Cannabis Taxes Have Not Solved Colorado's Budget Woes."
Many businesses complain that the excise tax is too high, particularly for marijuana growers who grow and sell their own cannabis. In those cases, the state has to come up with an "average market" price for the marijuana so it can apply the 15 percent rate. Some businesses say that average is too high, said Jean Smith-Gonnell, an attorney at the firm Troutman Pepper, who represents marijuana businesses. She said that often gets passed on to consumers.
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"When tax rates are so high, people are going out of business," Smith-Gonnell said. "And that's not a positive situation for Colorado businesses."
* Our Cannabis Practice provides advice on issues related to applicable federal and state law. Marijuana remains an illegal controlled substance under federal law.