Marijuana: Proposed $3.25 million Denver tax boost, $2 million Denver Health pot-ed program
Yesterday afternoon, the Amendment 64 committee of the Denver City Council was scheduled to talk about a proposed retail marijuana tax ordinance, as well as a presentation by Denver Health for a pot-education program to be funded by the city.
How much money are we talking about? Plenty. According to two documents on view below, the target tax amount may be $3.25 million -- and expenses for the roll-out of the Denver Health program exceed $2 million.
The Amendment 64 Committee is chaired by councilman Charlie Brown, with Mary Beth Susman serving as vice chair. Other members include Chris Nevitt, Albus Brooks, Jeanne Faatz, Chris Herndon, Jeanne Robb, Robin Kneich, Paul López, Judy Montero, Debbie Ortega, Peggy Lehman and Susan Shepherd.
The ordinance draft, created for discussion purposes, suggests setting a city tax on marijuana of 2.5 percent -- and while that would be on top of a state sales tax of 10 percent (and a state excise tax of 15 percent), it's still a more modest add-on than those being discussed by the Boulder City Council. The Boulder officials are considering a 15 percent excise and a 10 percent sales tax of their own, raising at least the possibility of weed taxes exceeding 50 percent there.
A64 Committee chair Charlie Brown.
However, the draft ordinance gives the Denver council the opportunity to jack up that 2.5 percent tax to 10 percent if it's deemed necessary. Here's proposed ballot language for the November election:
"SHALL CITY TAXES BE INCREASED BY [$3.25 MILLION] ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY IMPOSING AN ADDITIONAL SALES TAX OF 2.5% ON THE SALE OF RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS, WITH THE TAX REVENUES BEING USED TO FUND THE ENFORCEMENT OF REGULATIONS ON THE RETAIL MARIJUANA INDUSTRY, OTHER COSTS RELATED TO ENFORCEMENT OF MARIJUANA LAWS, EDUCATION AND PUBLIC HEALTH PROGRAMS ASSOCIATED WITH MARIJUANA CONSUMPTION INCLUDING PREVENTION OF UNDERAGE CONSUMPTION, AND OTHER CITY EXPENSES, WITH THE RATE OF THE TAX BEING ALLOWED TO BE INCREASED OR DECREASED WITHOUT FURTHER VOTER APPROVAL SO LONG AS THE RATE OF TAXATION DOES NOT EXCEED 10%, AND WITH THE RESULTING TAX REVENUE BEING ALLOWED TO BE COLLECTED AND SPENT NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW?"The reference above to "education and public health programs associated with marijuana consumption including prevention of underage consumption" dovetails nicely into the Denver Health proposal, prepared under the leadership of DH chief government officer (and former city councilwoman) Elbra Wedgeworth. The document suggests three main missions: "Evaluate," "Educate" and "Provide Early Treatment."
And they don't come cheap.
Continue for more about the Denver Health proposal, including the original documents.