While cannabis consumers may not like to hear about an increase in their marijuana taxes, at least they can take solace that their money is going to a good cause, as long as they live in Denver.
Denver Mayor Michael Hancock signed an increase in the city's marijuana tax from 3.5 percent to 5.5 percent on Tuesday. And while that may seem like bad news, the money is going to a very good place. The increased tax money is going to the city's funds to build affordable housing. The tax increase will double the number of affordable housing units the city will be able to create. Over 6,000 units will be created by the city of Denver.
With the two percent increase in taxes, Denver marijuana users will now pay around 25 percent in cannabis taxes when they make purchases, when you factor in taxes imposed by the state of Colorado.
“Overtaxing anyone in any situation in Denver is always a concern," Hancock said. "This was done in partnership and understanding with the industry and the customers. We would not have done it if the industry didn’t indicate they could handle it."
So yes, if you're in Denver you may have to pay a little more for your marijuana. But at least you'll be doing so legally, and you can also consider it your contribution to a good cause as well.