Marijuana to be taxed in Fruita, Colorado

Fruita, CO: Municipal voters on Tuesday passed a proposal imposing a five percent sales tax on medical marijuana and related paraphernalia. Nearly 60 percent of Fruita (population: 7,500) city voters approved the measure – marking the first time that any Colorado city has imposed a tax on cannabis sales.

Colorado voters legalized the physician-authorized use of marijuana in 2000.

The measure will go into effect on May 1. City officials anticipate that the local tax will raise approximately $100,000 annually.

In July, over 80 percent of voters in Oakland, California approved Measure F, which imposes a separate retail business excise tax on local medical marijuana dispensaries. Other California cities, including San Jose, are considering similar measures.

Also on Tuesday, 54 percent of city voters in Nederland, Colorado approved a municipal ballot measure removing all criminal and civil penalties on the personal possession of marijuana by adults. Denver and Breckenridge voters have approved similar local ordinances in recent years.

The Secretary of State has announced that the state currently receives over 1,000 applications a day for medical marijuana permits in Colorado.

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