A quirk in Colorado law allows marijuana dispensaries to sell weed tax-free on Wednesday.
On most days, the state collects a 10% sales tax and 15% excise levy on marijuana sales. Since legalizing the drug in 2012, the state has collected tens of millions in tax dollars from pot sells and used the funds to build schools.
According to USA Today, the tax break will reduce the price of a mid-grade ounce of pot by $20 in the Denver area.
The tax-free day on Wednesday is the result of a law that requires the state to waive taxes temporarily when revenue from that tax exceeds projections. Still, marijuana won’t be completely tax-free. Purchasers will still be required to pay ordinary state sales tax.
The tax-free day could cost the state $3 to $4 million in lost revenue, according to Fortune.
More Must-Reads From TIME
- The 100 Most Influential People of 2024
- The Revolution of Yulia Navalnaya
- 6 Compliments That Land Every Time
- What's the Deal With the Bitcoin Halving?
- If You're Dating Right Now , You're Brave: Column
- The AI That Could Heal a Divided Internet
- Fallout Is a Brilliant Model for the Future of Video Game Adaptations
- Want Weekly Recs on What to Watch, Read, and More? Sign Up for Worth Your Time
Write to Justin Worland at justin.worland@time.com