Eyeing Colorado’s New Sin Tax
After Colorado reporting hitting the tax revenue jackpot with its new 25% sin tax on marijuana tax last month, other States are viewing the tax revenue with anticipation. Why?
Several states since Colorado and Washington States have been discussing whether to make marijuana sales legal like Colorado and Washington did? What does that mean for consumers and taxpayers? The states are looking to replace lost revenue or their looking to generate new tax revenue.
The problem through is this. Does anymore remember when the lottery got started? A state would start a lottery and people would flock from surrounding states to get lottery tickets to pay for most of the time educational programs. Soon; however, the surrounding states would begin to say “Why don’t we have a lottery?” So the surrounding states would pass and implement a lottery. The tax revenue from lottery sales would decrease because people from these other states would no longer purchase lottery tickets form the first state to implement the lottery.
Will the same thing happen with marijuana sin tax? If and when other states implement their own marijuana sin tax, will the tax revenue from Colorado and Washington State begin to decrease just as lottery revenue did? Only time will tell.
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