Last month, the teachers in Colorado held a protest to demand for an increase in their salaries as well as additional funding for their schools. This event has led to many asking questions why the growing marijuana sales earning the state a lot of money is not enough to solve the issue with funding in education. Those who do not know how to get a tax ID in Colorado might not be also aware that the state is earning a lot with regards to the marijuana industry.
During the 2012 amendment, the voters gave their permission to legalize purchase of marijuana in the state as long as the funding will be used to invest in the education industry of Colorado.
The problem is that allotted budget is not even 2 per cent of the required budget in education which amounts to multibillion. To use other marijuana taxes will be not enough as well as to bridge the gap between the money that the schools needed and the money that they are receiving from the state.
Marijuana taxes starts at the grower which means that a 15 per cent tax is already applied once they are sold to a business or retail shop. The tax is only applicable to recreational marijuana and medical marijuana is exempted.
Another 15 per cent tax is added once the consumers purchase the marijuana from the retail shop. In case of medical marijuana, 2.9 per cent of sales tax is added which is the general tax required by the state. Any additional taxes are coming from local sales.
According to the marijuana amendment, the first $40 million earned from the taxes will be used for school funding. After which, 10 per cent will be given to the local government while $30 million is to funneled to a public school covered by the Department of Education.
For this fiscal year, they are planning to distribute the money to all schools within the district and not just to the rural schools. For businesses to help the state, they must know how to get a tax ID in Colorado and pay accordingly in order to lessen the burden of the education industry.