Are Marijuana Taxes Subject to TABOR?

Dear Stoner: I’m still waiting on my check of TABOR money, but it won’t come close to what I may have contributed at LivWell’s cash register. Are cannabis taxes subject to TABOR, at least, so I can get some of that money back?
Aunt May

Dear Aunt May: The Taxpayer’s Bill of Rights (TABOR) is an amendment to the Colorado Constitution, not a federal law, that requires voter approval for state tax increases and also for budget surpluses to be given back to Colorado taxpayers. But if you haven’t heard yet, we won’t be receiving TABOR checks in the mail this year as we did in 2022. Instead, those refunds will be added to next year’s tax returns, with the amount depending on a filer’s annual income.

Since cannabis is very much taxed at the state level – 15 percent on both retail and excise transactions – a portion of our dispensary purchases within the $2.53 billion of cannabis taxes and fees collected since 2014 have contributed to the state budget, which is subject to TABOR when Colorado collects more tax revenue than anticipated. Given that Colorado is expected to dole out more than $3.5 billion in TABOR refunds next spring alone, your return rate isn’t very high…but, yes, you may have received a penny or two back on your dispensary purchases over the past nine years. Don’t spend it too quickly.

Send questions to marijuana@westword.com.