Legal Marijuana Sales May Mean a Tax Break for Colorado Residents

   

Colorado residents could see upward of $100 million in tax breaks thanks to legal marijuana sales that have been a boom for the state’s economy.

WSJ NBC Poll  Forget Alcohol  Let s Smoke Pot 300x168 Legal Marijuana Sales May Mean a Tax Break for Colorado ResidentsBecause the state’s Taxpayer Bill of Rights has limits on how much the government can collect, taxpayers are owed a refund if that number is higher than the state projected.

And that number is really, really high — with projections for the full fiscal year of up to $184 million.

The state is currently grappling with how to handle the new revenue source and whether it would provide a tax break in next year’s state returns or perhaps ask voters if it could keep the money.

Via CNN:

If initial calculations end up being accurate, the state could owe taxpayers $67 million. Another estimate puts the amount at $107 million. But it’s also possible the state will collect less than $70 million, or that voters could allow the state to keep any extra money.

“This would just strike me as completely bizarre,” State Senator Pat Steadman as staffers explained how the state could collect so much more than initially expected. He called the situation “frustrating.”

The state is expected to know how much of a return state residents will get by July 2015 — when the full fiscal year ends.

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