Medical-marijuana dispensaries might be the only businesses in Colorado begging for their products to be taxed, says the Denver Post. Several such outlets say taxation is critical for their industry’s long-term health, and many say they’ve been collecting sales taxes for months – before a legal opinion issued Monday saying their products are taxable. The Colorado Department of Revenue may send letters to dispensaries to inform them about paying the state’s 2.9 percent sales tax. California has collected $11.4 million in tax on some $142 million of medical-marijuana sales in 2005-06.
The state attorney general’s opinion said medical marijuana is subject to state sales tax as are food products made with it. Marijuana seed is considered an agricultural product and exempt from sales tax. For dispensary owners like Miles Zalkin, who operates Pain Management of Colorado in Denver, the opinion just means business as usual. “We’ve been collecting sales tax from Day One,” said Zalkin, whose business has been open just over a year. “We run our business as if it was regulated.”