Colorado Updates Marijuana Tax Guidance

Changes to the Colorado excise tax on retail marijuana can be found in updated Colorado Department of Revenue guidance. As of August 9, 2017, the tax no longer applies to sales or transfers made by a retail marijuana cultivation facility to another cultivation facility. The tax is now imposed only on the first sale or transfer of marijuana from a retail marijuana cultivation facility to:

  • a retail marijuana store, or
  • a facility that manufactures marijuana products.

Notably, the tax does not apply to the sale or transfer of unprocessed marijuana to a medical marijuana center.

The guidance covers other topics,  as well, including:

  • how to calculate the tax for sales and transfers between unaffiliated parties;
  • how to calculate the tax for sales and transfers between affiliated parties;
  • sales tax licenses;
  • return filing; and
  • record keeping requirements.

On a quarterly basis, the department will determine and publish the average market price of bud, trim, wet whole plant, immature plant, or seed.

FYI Excise 23, Colorado Department of Revenue, August 2017, ¶201-383

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