The city of Pueblo, Colorado is looking to take the argument for ‘legalize and tax’ to another level.
We already posted about some state’s attempts to pull medical marijuana under the sales tax tent. The sales tax compliance issues facing dispensary vendors are compounded in Pueblo by what Will amount to a + 12% sales tax on medicine.
“Council President Larry Atencio, who favors licensing and regulating the businesses said all indications are the marijuana centers have plenty of patients or customers.
“Voters have said people have a right to use medical marijuana for certain health conditions,” Atencio said. “That’s fine, but I’m also willing to tax the heck out of them. I’m all in favor of sin taxes, so a 4.3 percent tax sounds fine to me.” “
The Council President seems confused on whether medical marijuana is medicine or a “sin”. We will leave that policy debate for another day.
The bottom line? Now that a few of the states have become comfortable with medical marijuana, they are recognizing the potential for big revenues.