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Marijuana taxes: City council should avoid singling out a business that already pays its fair share

City council should avoid singling out a business that already pays its fair share
(AP Photo/Brennan Linsley)

At some point, doesn’t the perception need to change?

The marijuana business is still a new one on the local retail scene. Compared to more venerable, traditional Durango businesses, it is more than just a newcomer. It is a newborn.

Yet, despite indications that retail marijuana outlets are here to stay, there are many who still regard them as experimental, or as phenomenons that will fade predictably once the novelty wears off – or fail quickly if neighboring states legalize marijuana as well.

But the fact remains that these are enterprises run by people who work hard, invest in their stores and pay their rents like other local retailers. The industry is enjoying high revenues, employs many locals and generates substantial tax revenues for the city, county and state.

A marijuana buyer in Durango pays an additional 15 percent state sales tax on top of the usual 3 percent city sales tax and 2 percent county sales tax that apply to all goods purchased here. The income of retailers is also heavily taxed by the federal government, at levels up to 60 and 70 percent.

Right now, marijuana retailers are operating under a cloud, as Attorney General Jeff Sessions has threatened a crackdown on the sale of what the federal government still regards as a dangerous, illegal drug.

That’s why a discussion by the Durango City Council about asking voters to approve an additional tax for indeterminate uses on recreational marijuana in November makes us uneasy.

Granted, the discussions are exploratory, but the idea of singling out one segment of our business community for special consideration, especially as the industry is only now becoming well established, shows that perceptions of the sale of marijuana need to evolve.

We agree with Johnny Radding, co-owner of Durango Organics, who said that talks of an additional sales tax on his products, after a similar idea was discussed and rejected just two years ago, makes it feel like his business is under attack.

Instead, Radding wants his business to be acknowledged for its contributions to the community.

He makes a valid point.



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