Denver City Council asks voters to OK 3.5% sales tax on recreational pot

DENVER -- The Denver City Council has decided to ask voters to approve a 3.5 percent sales tax on retail recreational marijuana.

T

he measure will go on the ballot in November.

Denver Mayor Michael Hancock had wanted a 5 percent sales tax, but the City Council voted Monday night to go with 3.5 percent.

In the same measure, however, voters will be asked to permit the council to change the rate at any time to as high as 15 percent in the future.

According to the Denver Post, Chief financial officer Cary Kennedy said the 3.5 percent tax is expected to bring in $3.4 million a year to pay for regulation, enforcement and education around the new industry. At 5 percent, the tax would have brought in an estimated $4.8 million, she said.