Compare Washington state and Colorado’s recreational use of marijuana policy. Describe the differences in policies with particular attention to the tax structure of each.
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However, the tax structure differs from state to state. For example, in Colorado, the tax levied for the production and distribution of Marijuana is charged in separate taxes. There is a standard sales tax of 2.9%, a special sales tax of 10%, and an excise tax of 15% levied on the cultivator (Goltz & Bogdanov, 2016). In addition to these taxes, local taxes are also levied. Personal use production and transactions of less than one ounce are not taxed. In Washington, on the other hand, an excise tax of 25% is levied on all sales. This means that the sales transactions of marijuana in this state are levied at a constant rate. In addition to the excise tax, local taxes are applied to the production and distribution of Marijuana. The Washington tax structure levies tax at all stages of the supply chain, leading to a heavier tax burden compared to Colorado.
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