April 20, 2019

Update: Fruita Voters Impose State’s First Sales Tax on Medical Marijuana

The small Western Slope town of Fruita has become the first municipality in Colorado to charge a sales tax on medical marijuana.

Although Fruita does not yet have a single medical marijuana dispensary within its city limits, voters approved the measure in advance of the dispensary boon seen in other Colorado cities. Sales of medical marijuana will be taxed an additional 5 percent, on top of the current 3 percent sales tax in Fruita. The additional tax is expected to offset the administrative costs associated with operating dispensaries, such as criminal background checks and other law enforcement duties and land use considerations.

Listen to Colorado Public Radio’s Mike Lamp interview Fruita City Manager Clint Kinney to learn more about Fruita’s proactive taxing mechanism.

(image source: INeedCoffee / CoffeeHero)

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