Residents of Colorado may get a one-time only tax refund next year thanks to the new marijuana tax scheme and a quirky state law.
State experts hope to get around $59 million in taxes this year from recreational marijuana alone. Some of this money was given to schools, but most of it may indeed go back into tax payers’ pockets. The reason for this is that Colorado may collect more money in tax than originally anticipated, but this isn’t allowed because the tax is in its first year.
Here’s how it works: Whenever a new tax is brought in, a law to protect taxpayers comes with it. For this reason, the state needs to estimate how much it thinks it will bring in, so a cap can be placed on the amount of taxes that can be kept. Colorado estimated how much money they thought marijuana could make, and so followed the cap on this number. At current standing, the actual total taxes will far surpass the estimated number.
As it were, this could mean the aforementioned refund is in order for taxpayers, because, like we said, the state is not allowed to keep more than the total estimated cap by law. This design to protect those taxpayers could wind up working in their favor. Still, there remains the possibility that it won’t happen, but only if the taxes don’t surpass the threshold.
If the refund goes into effect, we declare that Colorado note the day “The Denver Weed Party” or something of the sort, forevermore. Colorado, the ball is in your court.