Colorado votes against increasing the cannabis tax to support educational programs

This article originally appeared on Benzinga and was republished with permission.

By Nina Zdinjak

A vote that would impose higher taxes on cannabis to fund education programs in Colorado was rejected in Tuesday’s elections. Following the rejected proposal, the Colorado Learning Enrichment and Academic Progress (LEAP) program, low- and middle-income families would receive a $ 1,500 scholarship to allow children to participate in various educational activities, writes Marijuana Moment.

Photo by NeONBRAND via Unsplash

As part of the measure approved by Governor Jared Polis (D) and some former governors, the excise duty on the sale of recreational cannabis products would have been gradually increased from 15% to 20%. The first 3% increase is expected to begin on January 1 and reach 5% by January 2024.

The fiscal analysis found that Colorado would have raised an additional $ 138 million annually to support the measure until the final rate was set.

Advantages and disadvantages of the measure

Policy supporters argued that the measure is badly needed, especially during the COVID-19 pandemic, which has exacerbated income-related education problems.

On the flip side, some cannabis advocates vehemently opposed the measure, claiming that higher taxes would lead to more expensive cannabis products that would make them unaffordable for those who need them for medicinal purposes.

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“We are encouraged to see Coloradans oppose a regressive tax on the pain of people, especially veterans, teachers and the elderly, who need cannabis for medication but cannot get a health insurance certificate,” said Chuck Smith, CEO of BellRock Brands and Chairman of the Board of Directors of Colorado leads. “The cannabis industry, which has generated $ 1.6 billion in state taxes since legalization, is an integral part of Colorado’s business community and always supports our fair share.

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“However, our 30,000+ employees and hundreds of thousands of customers have made a statement: Stop unfairly taxing our industry,” continued Smith. “We hope that the business community will oppose future efforts to raise taxes on the cannabis industry as well as any other industry in the state.”

Separately, a proposed Denver local measure that would increase marijuana sales taxes in support of pandemic research has also not passed based on preliminary results. As part of the initiative, the local cannabis tax rate would have been increased by 1.5%.