Colorado’s Amendment 64 Task Force issued 58 recommendations on Wednesday, March 13, on how recreational marijuana should be grown, sold and taxed.
According to the 165-page report obtained by 7News, one suggestion is to set the sales tax at no more than 25 percent. But some members of the Task Force believe that figure would be too high, encouraging the survival of the illegal market and increasing the incidence of home cultivation among private citizens. The Task Force said there needs to be a special marijuana sales tax, but left it up to the legislature to set the taxation rate.
The Task Force also recommended that for the first year of licensing, only entities with valid medical marijuana licenses and those who applied for medical marijuana licenses before December 10, 2012 should be given licenses to grow, process and sell to people aged 21 and older.
Other recommendation highlights include:
- A new Marijuana Enforcement Division (MED) should be created in the Colorado Department of Revenue, funded by General Fund revenue for at least the next five years, to provide regulatory oversight of Colorado’s marijuana industries.
- Only Colorado residents should be allowed to hold licenses to grow, process, and sell adult-use marijuana, but sales to both residents and visitors should be permitted (with stricter quantity limits for out-of-state purchasers).
- There should be limits on the number of licenses that can be owned by one individual or group, the size of licensed premises, and the size of cultivation facilities.
- All types of marijuana sold from adult-use marijuana retail facilities should be in child-proof packaging and have warning labels that disclose THC content and list all pesticides, herbicides, fungicides, and solvents used in cultivation and processing.
The Task Force’s report now goes to the governor and state legislature, which will craft laws on the regulation of weed. Furthermore, the legislature will have to go back to voters for approval of sales and excise tax rates for marijuana.