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.
Get The Brief. Sign up to receive the top stories you need to know right now.
