Marijuana legislative update: Dispensary tax deductions and more

colorado capitol weed leafs.jpg
Yesterday we told you about HB 1114, the THC DUI bill, which is headed to the floor of the House, where it could come up for approval as early as this week before being sent off to the Senate.

While that and the pending legislation surrounding Amendment 64 are hot topics, a few lesser-known marijuana industry bills are creeping their way through the state legislature.

House Bill 1061, also known as the Responsible Medical Marijuana Vendor Program bill, passed final reading last month and has been sent to the governor for his final approval and signature.

The bill didn't see much controversy, likely because it really doesn't seem to do very much to begin with. As we pointed out last month, the legislation would create the framework for responsible vendor programs in the state, but doesn't require any dispensary or infused product manufacturer to actually participate in them.

Critics say the bill paves the way for such programs to become mandatory down the line, adding an additional layer of bureaucracy to the already convoluted medical marijuana program.

House Bill 1042, the medical marijuana tax reform bill, is also moving forward after stalling in the House Appropriations Committee in February. It gained approval on second reading in the House earlier today. If passed and signed, it will allow medical marijuana and recreational marijuana business owners to make business deductions related to their marijuana venture on their state tax returns. Currently, state tax return are based on federal returns, which do not allow for marijuana-related deductions.

According to the fiscal report on 1042, the bill could mean as much as $830,000 in general fund revenue reductions. It will cost around $337,333 and require at least one new full-time employee to implement over the next three years.

Approving 1042 is also among the recommendations from the Amendment 64 Task Force and Joint Committee, assigned to create the rules surrounding Amendment 64, which legalized small amounts of marijuana use, possession and cultivation, as well as establishing a recreational marijuana industry.

A third bill that has been overshadowed this session, HB 1238, would transfer $2.5 million from the state Medical Marijuana Enforcement Program to the Department of Human Services to be used for marijuana and prescription drug-abuse treatment programs. The money would come from state licensing and application fees. The bill last saw action on March 19, when it was sent to appropriations.

A fourth marijuana industry-related bill would require annual $100 inspections of commercial and caregiver gardens by local fire departments. SB 051 bill would allow fire departments access to the confidential medical marijuana database to locate the caregivers -- of which there are only a dozen currently registered with the state. The bill hasn't moved since being sent to the Senate Judiciary Committee in mid-January.

More from our Marijuana archive: "Cannabis Time Capsule, 1921: Marijuana use worse than opium addiction" and "Marijuana: Smart Colorado wants to ban retail pot shops -- or does it?"

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DonkeyHotay topcommenter

--  So where is the $40 MILLION that A64 promised for Schools ?!?

TAX THE SHIT out of these stoners until that $40 MILLION LIE becomes a reality !!

Force Lyin' Brian Vicente and Mendacious Mason Tvert to personally pay any shortfall.


As attractive as taxing weed is, either recreational or medicinal, it probably is not a good idea to do it while the feds still consider illegal. They could take all the money from the state. 


We need a consultant like Washington, our committees are stupid. Here is some quotes from their new consultant, seems to be much more coherent than our silly little recommendations, especially considering the MMCED failed audit.

20 percent of the people who smoke weed account for 80 percent of the consumption in that sector. “It’s true for alcohol,” Kleiman said. “The top 20 percent of drinkers consume more than 50 percent of the alcohol produced for the U.S. Or to put it a different way, 46 percent of all drinks in the United States are part of drinking binges. So when the alcohol industry tells you they’re a fan of responsible drinking, they must be planning to go out of business, because it isn’t responsible drinkers that build breweries. It’s drunks.

"With marijuana, it’s just the same, he explained. “A small number of very heavy users account for most of the marijuana, so the typical marijuana smoker engaged in the discussion is not the average customer of the industry, whether it’s legal or illegal.

Kleiman, a widely respected expert on drug policy and a member of the Washington consulting firm, declared that legalization and taxation on a state level is an impossible “pipe dream” without the repeal of the Controlled Substances Act. He advocates for a consumer co-op model that avoids creating a state monopoly or multibillion dollar industry, as a sort of middle ground that nullifies the worst effects of industry while protecting state officials whose involvement would otherwise be seen as a crime by the federal government.

DonkeyHotay topcommenter

@Monkey "He advocates for a consumer co-op model that avoids creating a state monopoly or multibillion dollar industry,"

Stupid Stoners should have thought of that BEFORE they voted that festering turd A64 into the Colorado CONSTITUTION.

That personal, individual supply model could have easily been attained if the prohibitionist A64 didn't have such pathetically puny, restrictive, deliberately dysfunctional possession/grow limits, continued criminalization of all personal sales, and arbitrary age discrimination.

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