In November of 2009, Gov. Bill Ritter told the state’s medical-marijuana dispensaries to pay sales tax and obtain retail-sales licenses, bringing the once-taboo product closer to mainstream respectability.
Colorado is now the second state, behind California, to tax and regulate medical-marijuana sales, a move that comes on the heels of the Obama administration’s decision in October to leave enforcement of laws governing medical marijuana to the states.
The governor announced his decision after Colorado Attorney General John Suthers issued a statement Monday saying that medical marijuana is “tangible property that is generally subject to state sales tax.” The opinion was issued in response to a query from Mr. Ritter, a Democrat.
Interestingly enough, advocates of medical marijuana applauded the move in the hope that it would remove the social stigma attached to marijuana use and cement the industry in mainstream America.
Todd Davis, president of Colorado Medical Marijuana, a referral and registration service, said the Obama administration’s announcement pushed the industry into overdrive.