Pubdate: Mon, 04 Nov 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

POT TAX WINDFALL UNCLEAR

Cities Don't Know How Much They'll Get If Voters Approve Proposition Aa

In Northglenn, there's been discussion of marijuana taxes paying for 
a senior exercise center or traffic-safety improvements around schools.

In Denver, officials expect pot tax money to fund regulation of 
marijuana stores or educational campaigns. And in Glendale, the talk 
has been that there isn't anything to talk about yet.

"It's too ambiguous at this point for anyone to depend on," said 
Chuck Line, Glendale's deputy city manager.

As voters this week decide whether to place substantial excise and 
sales taxes on recreational marijuana, cities around the state are 
taking different approaches to planning for how they would spend 
their share of the money if the measure passes.

Proposition AA would impose a 15 percent excise tax on wholesale 
transfers of recreational marijuana and another 10 percent statewide 
sales tax at the retail level. The excise tax money would go toward 
school construction, as specified in the constitutional amendment 
passed last year that legalized recreational marijuana sales.

Local governments that allow pot sales will get a 15 percent cut of 
the statewide sales tax money.

Some cities, like Denver, also have their own recreational marijuana 
sales tax measures on the ballot this year.

According to the state's voter guide, Proposition AA's sales tax is 
expected to generate close to $40 million a year, of which about $6 
million would be shared with local governments.

Exactly how that money is split among the governments depends on what 
percentage of the state's overall sales come from that jurisdiction, 
meaning cities currently have little idea how much they'll receive.

"I'm not sensing it's a whole lot of money," said Edgewater City 
Manager HJ Stalf.

In Denver, mayor's spokeswoman Amber Miller said the city would use 
any money to pay for issues related to marijuana legalization - such 
as regulating the stores or creating public-health educational 
campaigns on pot.

Some cities have begun to think of bigger possibilities for the money 
- - even if they have little to do with marijuana.

In Northglenn last month, City Council members kicked around ideas 
for the money that included improved facilities for seniors and kids.

Northglenn City Manager John Pick told council members they'll have 
to wait to know if the tax money windfall can sustain their brainstorms.

"At this point, we don't know how much we'll bring in," he said at an 
Oct. 7 study session. "Maybe a lot. Maybe a little."
- ---
MAP posted-by: Jay Bergstrom