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.