Pubdate: Fri, 01 Mar 2013
Source: Denver Post (CO)
Copyright: 2013 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: John Ingold
Page: 1A

POT TASK FORCE ADVISES SPECIAL SALES, EXCISE TAXES

The Recommendations Will Now Go to the State Legislature, Which Will 
Craft a Bill and Debate the Suggestions Anew.

What Colorado will look like with legal marijuana became 
significantly clearer Thursday when the state task force proposing 
rules for that new world finished its work.

Under proposals endorsed by the Amendment 64 Implementation Task 
Force, recreational marijuana in Colorado would be heavily taxed. It 
would be grown only indoors. It would not be allowed to be smoked at 
bars, restaurants or even social clubs.

It could be sold to people visiting from out of state, though. It 
could be given away to adults an ounce at a time but not in 
pot-for-donation swaps. Its sale would be watched over by a small 
army of state regulators.

During 80 days of poking and pulling at roughly 100 issues affected 
by marijuana legalization, the task force endorsed dozens of new 
policies on such topics as criminal enforcement, taxes, child 
protection and product labeling. Taken together, the recommendations 
represent a comprehensive set of ideas to regulate a 
recreational-marijuana regime unlike any in history.

The recommendations will now be put to state lawmakers, who will 
fashion them into a bill and then debate the issues anew.

"The first thing I have to say is, 'Thank you,' " Gov. John 
Hickenlooper told task-force members Thursday during a visit to their meeting.

Hardly a benedictory session, Thursday's meeting was more of a 
last-second cram for the task force to get through its work. During a 
five-hour hearing, the task force considered proposals on funding, 
changes to criminal laws and labeling of serving sizes in 
marijuana-infused goodies. Tax discussions, particularly, stood out. 
The task force recommended that Colorado lawmakers refer to voters 
two ballot measures on marijuana taxes. One would impose a 15 percent 
excise tax on recreational marijuana- arate that could increase over 
time - that stores would have to pay at the wholesale level. The 
other would create a special marijuana sales tax that customers would 
pay. Though the task force did not endorse a specific amount for the 
sales tax, it gave a 25 percent rate as an example.

Recreational marijuana would also be subject to standard state and 
local sales taxes.

The taxes-if the legislature puts them before voters and they are 
approved-could add several dollars to the average pot purchase of 
one-eighth of an ounce.

Supporters of the taxing proposals, including Department of Revenue 
Executive Director Barbara Brohl, said the money is needed to 
regulate marijuana stores. Brohl, whose department oversees 
medical-marijuana businesses, said a lack of money has hindered 
regulation of that industry.

"The funding model just didn't work," Brohl said. "And as a result, 
the division wasn't able to perform the regulatory and oversight 
functions it was created to do."

Opponents of the taxing proposals said that imposing too high of a 
rate will keep marijuana sellers in the black market.

The task force's work rubbed some marijuana advocates the wrong way.

"I feel like so much time has been spent on flat-earth concerns that 
we've missed the boat to the new world," said medical-marijuana 
business owner Jessica LeRoux, who said over-regulation of 
recreational marijuana will allow the black market to continue to flourish.

Meanwhile, Hickenlooper-while complimentary of the task force's 
effort-was hardly upbeat about the future of Colorado with legal 
marijuana. During his brief remarks to the task force, for instance, 
he predicted that the state would see more homeless teenagers because 
of marijuana.

"I think that world is going to have consequences that, no matter how 
thoughtful we are, we will not be able to anticipate," he said. "But 
I'm not saying the sky is falling. ... Obviously, we have to be pragmatic."
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MAP posted-by: Jay Bergstrom