Marijuana and Tax
| Which Authority | Type | Tax Rate | Tax as of 7/1/17 |
|---|---|---|---|
| Colorado | General sales | 2.9% | 2.9% medical only |
| Colorado | Retail MJ sales | 10.0% | 15.0% |
| RTD, SCFD | General sales | 1.1% | 1.1% |
| Jefferson County | General sales | .5% | .5% |
| Wheat Ridge | General sales | 3.5% | 3.5% |
| Total Tax 1 | Retail MJ | 18.0% | 20.1% |
| Total Tax 2 | Medical MJ | 8.0% | 8.0% |
What Is Taxable?
All marijuana, marijuana products, novelties and accessories sold to the end user are subject to sales tax. Items that would be subject to the city sales tax if they were sold but are given away as promotional items or gifts by the business, or which are traded for anything of value, are subject to the city use tax at the same rate.
Items that are an ingredient of or are incorporated in the final product in producing marijuana or marijuana products are exempt from sales or use tax. Packaging and labeling materials are also exempt, including carryout cover that is required by Colorado law. Carryout cover is any type of bag, carton or box that is provided to the customer to contain packaged product when they leave the store. There is no need to pro-rate for paying use tax if other uses of carryout cover is less than ten percent of average purchases.
Wholesale sales for resale to other duly licensed vendors are exempt from the city sales tax. Document all exemptions with an exemption form. Collect the form once every year from each vendor and keep it on file or require one for each sale.
Filing
File using one of the online filing options for convenience and accuracy. On the eTax option, a return may be filed by the due date and paid by cash in the Finance office, if necessary. Sales Tax Online is user friendly but requires a bank account from which to draw payments. Credit card payment options are also available on Sales Tax Online.