Horse Gulch Blog

Watchdogging for the greater Durango area

28 Jun 2015

City of Durango staff discussing the *idea* of a new tax on retail marijuana. Let’s take a poll.

Posted by Adam Howell


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One topic in the agenda documentation for the study session that the Durango City Council is having this Tuesday is the idea of adding an additional tax to the sale of recreational marijuana as a source of revenue to use on City buildings.

Here’s the text from the Purpose and Background on the agenda documentation, written by City Manager Ron LeBlanc:

One of the key components of Colorado’s Amendment 64 is the recognition of local control, allowing local governments not just the ability to ban (or regulate) marijuana businesses within their borders, but also the ability to add additional taxes to the retail sale of marijuana.

According to data provided by the Colorado Municipal League, 19 communities in Colorado have enacted an additional sales, excise and/or occupation tax to the sale of recreational marijuana (see Attachment).

The results of the Facilities Master Plan are expected later this summer. Many of the City’s buildings are more than 30 years old and are in need of significant remodeling or replacement, however there is not additional source of funding to accomplish that.

Staff will be discussing a proposal to add a 5% additional tax to the sale of recreational marijuana as a source of funding City facilities. Staff estimates that the additional revenue raised as a result of this new tax could be approximately $900,000 per year.

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