Quick and Dirty: City pot tax shelved – for now
An idea for a citywide marijuana tax increase has been nipped in the bud – at least for now.

An idea for a citywide marijuana tax increase has been nipped in the bud – at least for now.

On Tuesday night, the Durango City Council voted 3-0 against putting a tax increase on the November ballot. City Councilor Melissa Youseff was absent from the meeting, and Councilor Dean Brookie chose to recuse himself because, as an architect, he’s worked with marijuana businesses.

Mayor Dick White, Mayor Pro Tem Sweetie Marbury and Councilor Chris Bettin voted against moving forward with a proposed 5 percent tax increase on retail and medical marijuana sales, and an additional 5 percent excise tax on grow facilities and manufacturing businesses in the industry.

La Plata County Commissioners recently voted, also unanimously, on a proposed tax increase. Both entities are looking for ways to address funding shortfalls.

“If we were targeting teachers, professors, doctors, restaurants or coffee shops – or any of the community members – I think we would see this very differently,” Bettin said at the meeting. “I think it’s time for us to recognize the contribution of this industry to our community.”

Ahead of the council’s discussion, representatives from the industry spoke out on the proposal. Dispensary owners and employees were present, including those from The Greenery and Durango Organics. Concerned citizens, professionals and other businesses supported by the industry, including an HVAC specialist, also spoke Tuesday.

Not one supported the measure.

Many expressed concerns over returning once again to defend their industry, which deals with about a 20 percent tax rate. In addition, those businesses face stringent regulations at the state and local levels, are not allowed to participate in regular banking practices, and cannot deduct operating expenses on federal tax returns.

Residents and business owners who spoke out also talked about the benefits they bring to the community like jobs, living wages, tourists and sales tax revenues from the city’s current rate of 3 percent.

This isn’t the first time the city has considered increasing the sales tax for marijuana businesses. It first looked at the proposal in 2015, but councilors voted against the measure.

White was on the council then. “I’m persuaded as I was two years ago, it’s just not fair ... to pile on another tax,” he said at the meeting.

Yet, it’s likely this will not be the last time the industry will face a tax increase.

Bettin mentioned that he understood the industry’s exhaustion on having to continually address the issue. How- ever, with the current tax structure at both the state and local levels, including constraints put on municipalities by Colorado’s Taxpayer Bill of Rights, or TABOR, they are likely to have de?ja? vu in another two years. And, he apologized for that.