Taxes on recreational marijuana have helped fill the state’s coffers, and now the Durango City Council is looking to cash in a bit more.
Councilors debated the merits of an additional 5 percent sales tax on recreational marijuana, which could raise about $900,000 annually.
A ballot question about this tax could go before voters in November, and three councilors in attendance at a Tuesday work session seemed to back the idea.
But there was some debate about whether this tax should be dedicated for a specific purpose, such as maintaining aging city buildings, or allocated to the general fund, in which case it could be used on a more flexible, as-needed basis.
The city is currently working on a facilities master plan to prioritize buildings that may need to be remodeled or replaced, and this new tax could help fund some of that work, said City Manager Ron LeBlanc.
“Seven facilities are really a drain on the city in terms of maintenance,” LeBlanc said.
The building housing the Durango Police Department is one that may need the most immediate work.
“The police department is abysmal,” said Councilor Sweetie Marbury.
Councilor Christina Rinderle argued that if the money was open for general purposes, it could fund facilities construction but still give the council more flexibility to use the money for other things.
Marbury expressed some concern about not designating a specific purpose for a new potential revenue stream from recreational marijuana sales.
“I’m a little old-fashioned. I want to know where the money is going to go,” she said.
The state currently levies hefty taxes on marijuana, including a 10 percent retail marijuana special sales tax and 15 percent excise tax.
The city currently receives only 15 percent of the state’s 10 percent special sales tax. In April, the city took in about $13,958 from this tax.
The heavy level of taxation raised the question whether another tax would be prudent.
“We do not want to be driving marijuana sales back underground,” said Councilor Dick White.
Local marijuana tax measures have been popular statewide, and this type of measure is in effect in 19 towns, according the Colorado Municipal League.
