State Blue Books are arriving in mailboxes with information about a state ballot question in the Nov. 3 election. Local issues will be on the ballot as well.
The state question is Proposition BB to keep and spend $66.1 million of tax revenue from retail recreational marijuana sales. It was referred to voters by the legislature through House Bill 15-1367.
According to the Blue Book, the vote is necessary because the state constitution requires two revenue estimates to be provided in the Blue Book for proposed tax increases. One is overall state revenue subject to constitutional spending limits (TABOR). The other is estimated first year revenue from the new tax. If either estimate is exceeded, the state must refund the excess up to the estimated first year revenue from the new tax.
Voters approved Amendment 64 in 2012 to allow sales and possession of recreational marijuana for adults. In 2013, they approved Proposition AA to authorize excise and sales taxes on this marijuana. The first year tax revenue was slighty below the $67 million estimate, but overall state revenue for 2014-15 was above the estimate, triggering the requirement for a refund unless voters approve Prop. BB.
The Blue Book says that if Prop. BB fails, $25 million will be refunded to Colorado residents who file a tax return for 2015, with an average refund of $8 per full-year taxpayer. Another $24 million will be refunded to retail marijuana cultivators; and $17.1 million will be refunded to retail marijuana customers through a temporary reduction in the sales tax on that marijuana.
On Jan. 1, 2016, the sales tax on retail marijuana would be reduced from 10 percent down to 0.1 percent until the $17.1 million revenue reduction is achieved.
If Prop. BB passes, $40 milion will be spent on school construction, $12 million on an assortment of state programs as listed in the Blue Book, and the rest will be spent in ways yet to be determined.
The Blue Book doesn't say anything about how this vote relates to the Sept. 16 tax holiday for recreational marijuana buyers. That also was to refund "excess" revenue.
More information about Prop. BB is at www.coloradobluebook.com.
The Nov. 3 ballot also will include Bayfield and Ignacio school board elections; Bayfield, Ignacio, Durango, and La Plata County questions to opt out of a state law passed in 2005 that prohibits local governments from directly or indirectly providing high speed broadband or other telecom services; a Bayfield request to increase the town sales tax from 2 percent up to 3 percent to pay for street maintenance and drainage infrastructure; and a county request to increase property taxes to pay for county road maintenance.
Ballots will be mailed to active registered voters the week of Oct. 12.
