What is Proposition BB?
Simply put, this proposition allows voters to decide if tax revenues from the sale of retail marijuana should be retained by the state or refunded back to Colorado residents.
A Quick History
In 2013, voters approved Proposition AA which authorized excise and sales taxes on retail marijuana sales. The voters were given estimates of state revenue subject to the state's constitutional spending limit and revenue from the taxes for budget year 2014-2015. The actual state revenue for budget year 2014-2015 ended up being higher than the voter approved estimates and the state now owes taxpayers a refund, unless the voters allow the state to keep, and spend, the revenue.
Why Vote No?
In 2015, the state legislature passed House Bill 15-1367, referring Proposition BB to the voters to allow them to decide what to do wit the excess revenue. As it stands now, this excess tax revenue is required to be refunded to Colorado residents, according to the Colorado Constitution, unless voters decide otherwise. If the state is allowed to retain these excess revenues, taxpayers will effectively give up a refund to pay for program expenditures NOT prioritized in the original state budget. By voting NO, Colorado taxpayers will get back money that is rightfully theirs.
The Impact On The Marijuana Industry
Voting "No" will mean the tax revenue is refunded accordingly:
$25 million refunded to Colorado residents who file a 2015 state income tax return.
$24 million refunded directly to retail marijuana cultivators.
$17.1 million refunded to retail marijuana purchasers through a temporary reduction in sales tax.
Posted on 10/18/2015 at 6:00:00 PM