A marijuana buzz came tax-free for Colorado’s recreational smokers Wednesday, which meant business was booming for local dispensaries.
Thanks to a loophole connected with the Taxpayer’s Bill of Rights, smokers and businesses profited from a one-day suspension of Colorado’s 10 percent sales tax and 15 percent excise tax on marijuana.
But the government’s revenue loss was the marketplace’s gain, including Durango Organics co-owner Jonny Radding, who said Wednesday began with a flood of customers as soon as the store opened at 9 a.m.
“We were surprised and overwhelmed by how many people came out to take advantage of the day,” Radding said. “The people started coming as soon as we opened and lasted until almost just before we closed.”
No additional staff were brought in for the “pot holiday,” but Radding said all hands were on deck to handle backed-up lines of consumers.
Radding could not provide an estimate of sales or how many people came through the door on Wednesday, but Rob O’Malley, a bud tender at Colorado Grow Company, guessed foot traffic doubled compared with an average Wednesday.
In addition to the tax discount, the recreational dispensary offered out-of-town customers an extra 10 percent off and locals an extra 30 percent off. That came to about $30 in savings for out-of-town consumers to purchase an ounce and roughly $80 for locals.
“There were people who said they came from Texas just because of the sale,” O’Malley said. “Other people told us they were Christmas shopping.”
Though consumers and businesses enjoyed the holiday, it meant an estimated $3.5 million to $4 million in lost revenue for the state.
jpace@durangoherald.com
