Colorado Unlawfully Inflated Cannabis Excise Tax Base, Suit Says

Colorado owes the state’s cannabis retailers excise tax refunds because its calculation method artificially exaggerates the market rate of cannabis products, according to a new lawsuit.

Mammoth Farm LLC, a Colorado cannabis producer, filed a complaint Thursday in the Denver City and County district court against the state Department of Revenue seeking class status on behalf of those subject to the state’s marijuana tax.

Colorado voters in 2013 approved a 15% excise tax on a grower’s first sale or transfer of marijuana to a retailer or producer. For transactions between unaffiliated entities, the tax applies to the unprocessed product’s contract ...