The Marijuana Tax Act of 2012

As you may or may not already know marijuana is now legal in Colorado under Amendment 64 or the regulate marijuana like alcohol act of 2012. What this means is that although marijuana is legalized, they are going to attempt a marijuana tax it like alcohol. That means millions of tax dollars a year in revenue for the state of Colorado. Christian Sederberg has proposed that the first 40 million generated by marijuana taxing should be used to improve as well as build new public schools. I believe that once the other states start to see what massive tax revenue can be gained by taxing and regulating the herb just like alcohol, many will attempt to legalize it.

It is estimated that there will be a marijuana tax between 30-40%. To give a relative example, the average gas prices in my neighborhood for today are about $3.80. The average fuel taxes across the U.S as of January 2013 are about 30 cents to the gallon. 3.8 divided by .3 = 12.66, so that means that gas is taxed in my area at around 12.5% a gallon. Now hopefully you will be able to understand the magnitude of what a 40% tax could mean for marijuana prices at certified stores. Of course better heavily taxed and legal than not taxed and illegal.

A problem that those assigned to taxing the herb is that they have to find the sweet spot between too expensive and too cheap. For if the prices for cannabis are ridiculously high then some officials fear most could rely on illegal methods of buying the substance. Of course the fact that all adults over the age of 21 can legally grow six plants in their home makes this an altogether rational fear. For if not enough people buy legal weed then the administration could collapse due to lack of funding.

Colorado certainly has a lot of challenges to face in their effort to legalize the herb. From marijuana tax to regulating they have a lot to sort out, but I am confident in them. Not to mention federal opposition the bill could have. Most is uncertain in Colorado, but the beacon of pot smokers statewide will serve as a moral buffer for any who are too uncertain.

Similar Posts

  • Medical Cannabis for ADHD

    Attention deficit hyperactivity disorder (ADHD) is a neurodevelopmental mental disorder. There is some confusion surrounding this disorder with attention deficit disorder, or ADD. They are in fact the same thing, but ADD is a more outdated way of saying ADHD. It has a variety of symptoms with the most notable being, trouble paying attention, excessive…

  • The Many Uses of Hemp

    Hemp is an extremely versatile crop and was once one of the most widely grown industrial plants in America. It is one of the earliest plants known to be domesticated by man, with some evidence dating as far back as the Neolithic Age in China. Despite being grown for the past 12,000 years by mankind,…

  • Hemp Clothing

    It is not just for hippies anymore!  Hemp clothing is making a big come back after years of being suppressed and undervalued. Due to the restrictive policies and attitudes around marijuana, growing hemp even for textiles is illegal in the US, even while the hemp plant that is commercially grown for fiber has no value…

  • Treating Depression with Cannabis

    While using medical cannabis to treat physical ailments such as cancer, epilepsy, pain, etc. is commonplace, you rarely hear about using medical cannabis to treat psychiatric disorders such as depression. Fortunately, as the stigma regarding the usage of marijuana is slowly being lifted from our society, more opportunities arise to explore the possible psychological benefits…

  • Medical Marijuana and Hypertension

    Hypertension, much more commonly known as high blood pressure is usually a long term condition. It’s essentially defined as a condition in which blood pressure in the arteries is constantly elevated. Hypertension affects approximately 15% of the global population. In most cases, high blood pressure won’t cause negative symptoms. But, long term hypertension can cause…