Pubdate: Fri, 29 May 2015
Source: Denver Post (CO)
Copyright: 2015 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: John Aguilar

ADAMS COUNTY SUED BY CITIES OVER TARGETED POT TAX

Three cities - Aurora, Commerce City and Northglenn - this week sued 
Adams County for what they claim is the unconstitutional imposition 
of a sales tax targeted only at recreational marijuana.

The cities are asking a judge to void the 3 percent retail pot tax 
Adams County voters approved in November, which is set to go into 
effect July 1.

Aurora and Northglenn each impose a 2 percent sales tax on 
recreational marijuana, while Commerce City, whose City Council is 
set to vote in favor of such sales at its meeting on Monday, imposes 
a 7 percent tax on the sale of all cannabis products.

The municipalities argue in the suit that Adams County doesn't have 
the authority under the state constitution to levy a tax on just a 
single product and that doing so will put the "cities' businesses at 
a competitive disadvantage" with other Colorado retail pot stores.

Adams County already imposes a regular sales tax rate on all items, 
including marijuana, sold anywhere in the county.

"No statutory or constitutional authority exists for a special sales 
tax, that is, a sales tax on particular types of items or 
transactions, such as a special marijuana sales tax," the suit claims.

Adams County spokesman Jim Siedlecki said voters in each of the 
municipalities in the county approved the county's sales tax on pot sales.

"We are simply applying the will of our voters," he said. "This is 
what they approved."

Siedlecki said the county will file a response in Adams County 
District Court this week in anticipation of a hearing on the matter next week.

The county let a 16-month ban on recreational marijuana expire at the 
end of 2014 after voters approved the 3 percent special sales tax.

Adams County is in the midst of issuing licenses to 10 marijuana 
establishments - including stores, grow facilities and infused 
product manufacturing facilities - in unincorporated areas.

The county's tax is projected to bring in about $1.2 million in its first year.

The lawsuit points out that a Colorado Senate bill, which would have 
given counties "the specific statutory authority to impose a special 
marijuana sales tax," never made it out of committee during this year's session.
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MAP posted-by: Jay Bergstrom