Colorado declares tax holiday for marijuana sales
- Published
Colorado has temporarily suspended taxes on marijuana after the US state brought in more tax revenue than anticipated.
The tax will return to 25% on Thursday but state law requires an automatic suspension of any new taxes in the event of an accounting error.
Pot retailers saw large crowds on the pot tax-free day.
Colorado became the first state in the US to legalise cannabis, after voters approved the change in 2012.
The average savings on Wednesday for a $200 ( £128) ounce of marijuana will be about $20 (£13), Fox31 Denver reports, and a regular 2.9% sales tax will still apply, as will taxes on medical marijuana.
The temporary tax break could cost Colorado up to $4m (£2.5m) in revenue.
The tax holiday also benefited retailers who saw customers line up before the stores opened for the day.
"I probably saved $45,000 before lunch," said a smiling Tim Cullen, owner of the Colorado Harvest Co. chain of marijuana dispensaries.
Correction: An earlier version of this story incorrectly stated the cause of the tax holiday.
- Published20 February 2014
- Published2 August 2014