§ 53-85. Imposition of tax.

(a)

(1)

In addition to the sale tax imposed by division 1 of this Article II, beginning January 1, 2014, there is imposed upon all sales of retail marijuana and retail marijuana products to a consumer by a retail marijuana store a tax at the rate of three and one-half (3.5) percent of the amount of the sale.

(2)

In addition to the sale tax imposed by division 1 of this Article II and the sale tax imposed by subsection (a)(1) of this Section 53-85, beginning October 1, 2018, there is imposed upon all sales of retail marijuana and retail marijuana products to a consumer by a retail marijuana store a tax at the rate of two (2) percent of the amount of the sale. The two (2) percent tax described in this subsection 53-85(a)(2) shall be dedicated to the Affordable Housing Property Tax and Other Local Revenue Fund for affordable housing purposes.

(b)

The maximum tax rate that may be imposed pursuant to this section is fifteen (15) percent. At any time on or after January 1, 2014, the city may, by ordinance:

(1)

Establish another tax rate to be imposed pursuant to this division 4 that is equal to or less than the maximum fifteen (15) percent tax rate provided in this subsection; or

(2)

After establishing a tax rate that is lower than fifteen (15) percent, increase the tax rate to be imposed pursuant to this section; except that, in no event shall the city increase the tax rate above fifteen (15) percent of the sale of retail marijuana or retail marijuana products.

(c)

Nothing in this section shall be construed to impose a tax on the sale of marijuana or marijuana products to any person by a medical marijuana center licensed by the Colorado Department of Revenue to sell medical marijuana and medical marijuana-infused products pursuant to the Colorado Medical Marijuana Code, article 43.3 of Title 12, C.R.S., and licensed by the city pursuant to article XII of chapter 24, D.R.M.C. To the extent any retail marijuana store exists at the same location and under common ownership with a licensed medical marijuana center, the retailer shall strictly segregate and account for sales of retail marijuana distinct from medical marijuana in accordance with all applicable state and city laws and regulations governing collocation of retail marijuana stores and medical marijuana centers.

(Ord. No. 413-13, § 1, 8-26-13; Ord. No. 864-18, § 4, 8-27-18)