Representatives for Igadi, Ltd, a full spectrum Cannabis Company headquartered in Tabernash, filed a petition in Grand County District Court contesting the November 2018 ballot measures 1A and 1B last week. Both measures allowed the county to raise the tax rate for marijuana grow and distribution operations in the County.
In January, Ballot measure 1A will increase sales tax on retail marijuana by 5 percent and may raise tax revenue by $310,000. Ballot measure 1B will allow the county to increase excise tax on retail marijuana 5 percent and may raise an estimated $155,000.
Igadi, Ltd operates 6 locations in Colorado, with the main grow facility in Tabernash. Igadi representative David Michel said, “These measures make it difficult to operate in Grand County.” The petition filed in district court December 1st states that the voters were misled by the fiscal impact statements included in the Ballot measure questions and seeks to overturn the vote and stop the county from collecting the additional taxes during the process.
Representatives of Igadi believe the County either “grossly exaggerated or flat out misrepresented the expected revenues” that they’ll receive from the proposed tax by as much as five times the actual amount in the case of the excise tax.
As a result of the new taxes, customers can expect their after-tax prices on marijuana increase by 10% and they’re already paying a sales tax of 19.2%. The heavy tax may discourage some tourists and Denver-based customers from waiting to make their purchases at the dispensaries in unincorporated Grand County and buy their pot products for less in the front range.
Both measures passed by a narrow margin in November and, according to Michel, will have a negative impact on Igadi operations throughout the state as the Tabernash facility provides product and support for all of their Colorado locations.