Attorney general: Medical marijuana taxable

“Medical marijuana, in most instances, should be subject to state and local sales taxes,” said Colorado Attorney General John Suthers, who issued a formal opinion Monday.

Suthers said only seeds would be exempt from sales tax in Colorado. Otherwise, it would be up to vendors to collect and remit sales tax on other forms.

He said medical marijuana is considered personal property that can be taxed, and it doesn’t qualify for a tax exemption as a prescription drug. It also doesn’t generally qualify for agricultural tax exemptions, Suthers said. Retailers must have a state retail sales license.

Colorado voters in 2000 approved an amendment that allows marijuana use for “debilitating medical conditions,” but marijuana remains illegal under federal law.

Suthers’ formal opinion can be found here.