Nov 17, 2009 10:08 AM by Associated Press
Gov. Bill Ritter will direct medical marijuana dispensaries to start paying sales tax following an opinion from Colorado Attorney John Suthers that medical marijuana is subject to state and local taxes.
In an opinion issued Monday, Suthers said that medical marijuana is considered personal property that can be taxed and shouldn't be treated like prescription drugs, which are tax exempt. Ritter spokesman Evan Dreyer said the administration will immediately tell dispensaries to get retail licenses and start paying sales tax.
The decision comes just as Denver moves to impose sales tax on medical marijuana. Denver plans to notify dispensaries that it will start collecting municipal sales tax starting in December.