Editor’s note: Now through the Nov. 5 election, the Herald is examining common claims made in ballot campaigns.
Campaign: Proposition AA, marijuana taxes.
Claim: The state Legislature “pulled a sneaky move” by proposing “the largest tax measure in Colorado history.”
Who is saying it: The anti-AA campaign on its Web page, NoOverTaxation.org.
Far from sneaky, the Legislature put the pot tax on the ballot after five months of highly visible debate that was covered extensively by the media.
Nevertheless, opponents believe the Legislature pulled a fast one by asking for a special sales tax on marijuana that was never contemplated in Amendment 64, the voter-adopted law that legalized the psychoactive plant in 2012.
Amendment 64 called only for an excise tax to raise money for school construction. It did not specifically forbid additional taxes, so legislators decided to tack on a sales tax in order to pay for regulators and inspectors.
The state’s experience with medical marijuana regulation convinced legislators (mostly Democrats) to propose the extra sales tax. Audits found that licensing fees on medical pot shops fell far short of predictions, forcing the state to lay off all but 14 people in a regulatory office that was budgeted to have 55 people to oversee the pot industry.
As for the claim about Prop AA being “the largest tax measure in Colorado history,” it is not even the largest tax measure on the ballot this year.
Prop AA is projected to raise up to $70 million a year, and its effect is limited to people in the retail marijuana market. Amendment 66, which is also on the ballot, would raise about $1 billion for schools through the income tax, and it affects a much wider portion of Colorado taxpayers.
jhanel@durangoherald.com
