Nov 17, 2009 6:38 pm US/Mountain
Fort Collins Pot Dispensaries Already Pay Tax
FORT COLLINS, Colo. (CBS4) ―
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An ad for a medical marijuana dispensary in Fort Collins.
CBS
Fort Collins is way ahead of other Colorado cities on the medical marijuana tax issue. It's been collecting taxes on medical marijuana for more than a year.
There are 27 dispensaries in Fort Collins now, including one that took out a full-page advertisement in the Colorado State University campus newspaper last week. For the past year and a half, all the marijuana dispensaries have been
collecting sales tax just like any other retail business in Fort
Collins.
"We've viewed the sale of the marijuana product as a taxable transaction per the guidelines that were established by the Department of Health," Fort Collins finance director Chuck Seest said.
Seest said with applications for 15 new marijuana dispensaries in the past two days there is also a growing number of questions.
"Getting an understanding of which establishments are out there meeting that medical need per se, and which ones have other goals in mind, (like) just selling pot," Seest said.
City Manager Darin Atteberry said Fort Collins needs to consider issues like land use and licensing for marijuana providers.
"If you were to request a liquor license you have to go through a background check, fingerprint, Social Security, driver's license -- a pretty rigorous process," Atteberry said. "There's no background check for individuals who hold medical marijuana dispensaries right now."
"We have a lot of questions we don't have answers to," Mayor Doug Hutchinson said.
Hutchinson and City Council are considering a moratorium on new pot shops.
"We are getting an avalanche of applications for medical marijuana dispensaries and we have these questions and I think it's responsible for us to say, 'Let's put a hold on this and let's get some answers,'" Hutchinson said.
City Council was expected to vote on a moratorium of up to 10 months with no new approvals of the marijuana dispensaries so city leaders can tackle some of the questions on Tuesday evening.
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