Marijuana Tax Rates
|Type of Business||Excise Tax||Use Tax & Rate||Sales Tax & Rate|
|Cultivation Facility||No||Yes – 3.86%||No**|
|Wellness Center||No||Yes – 3.86%||Yes – 3.86%|
|Cultivation Facility||Yes – 5.0%||Yes – 7.36%||No**|
|Dispensary||No||Yes – 7.36%||Yes – 7.36%|
|MIP||No||Yes – 7.36%||No**|
|Testing||No||Yes – 7.36%||No**|
|Type of Tax||MMB Grow||RMB Grow||MMB Retail||RMB Retail||MIP||Testing|
|Excise||No||Yes – 5.00%*||No||No||No||No|
|Use||Yes – 3.86%||Yes – 7.36%||Yes – 3.86%||Yes – 7.36%||Yes – 7.36%||Yes – 7.36%|
|Sales||No||No||Yes – 3.86%||Yes – 7.36%||No**||No**|
*If vertical integration is eliminated at the state level, the excise tax would be charged on plants as well as buds and trim. Currently, the sales tax rate is charged on plants transferred to another grow because it has to be a retail sale
** Retail sales not allowed from Boulder cultivation facilities, MIPs or Testing locations. All MIPs and Testing facilities are treated as recreational for tax purposes.
~ For RMB retail locations, 3.86% city sales tax is applicable to paraphernalia sales that are itemized separately from anything including any amount of marijuana, but 7.36% applies to all sales of any items with marijuana.
City tax rate of 7.36% includes both standard 3.86% sales and use tax and additional RMB 3.5% city sales and use tax. City also receives 15% share back from State collected RMB 10% sales tax.
Sales tax is paid on the retail sales amount charged to the customer.
Use tax is paid on the cost of assets and expenses of the business.
Excise tax is due when marijuana is transferred from a RM cultivation facility to a MIP, testing facility or RM store. The tax is paid on the amount calculated on the weight or number of plants multiplied by the value set. The Average Market Rate values for the current period can be found at: https://www.colorado.gov/pacific/tax/marijuana-AMR