[[{“value”:”
The city of Manitou Springs is taking steps to lower its retail marijuana sales tax from 10% to 5% in a bid to retain competitiveness with newly-allowed recreational sales in Colorado Springs.
“That would make us equal to Colorado Springs,” said Mayor John Graham at a Manitou Springs City Council meeting Tuesday night.
The measure passed on first reading Tuesday, with a second reading and public hearing scheduled for June 3.
Bill Conkling, founder and CEO of retail marijuana shop Maggie’s Farm, one of two dispensaries in the city, said profits were declining significantly in the wake of a successful ballot measure this past fall allowing existing medical marijuana businesses to transition to recreational sales in Colorado Springs.
As of April 12, 27 businesses had obtained recreational marijuana licenses, according to city records.
Since recreational sales started in the state’s second-largest city the middle of April, Conkling told Manitou Springs council members that comparison sales numbers between last year and now were down about 30% week over week.
“You can imagine what that’s done to our profit margin,” he said.
A contributing factor, he said, was the impression among customers that prices would be higher in Manitou Springs due to higher taxes. The difference was noted in online chatter, Conkling said, though he said prices remained competitive with Colorado Springs.
“The optics have been really hard for us to mitigate,” he said.
Manitou Springs enjoyed a major spike in sales tax revenue after the city allowed marijuana sales in 2014. State law does not allow the city to disclose specific numbers when it comes to sales revenue when there are fewer than three marijuana stores, but overall sales tax revenue surpassed the city’s decade high water mark in the year marijuana sales began.
Sales tax revenue in the “other” category of industry, including marijuana shops, increased 4,268% in the first half of 2015 compared to the same period in 2014 before sales began, according to city financial data.
In the intervening years, Manitou Springs has been aware of the possible financial effect of a successful recreational marijuana ballot measure in Colorado Springs.
In August 2022, the city stopped funneling some revenue from recreational sales into the Manitou Springs Urban Renewal Authority in anticipation of a Colorado Springs ballot measure. The money instead went to the town’s general fund after a narrow 4-3 vote from City Council.
Earlier the same year, the city increased its sales tax percentage from 6% to 10%.
According to city financial records, Manitou Springs collected about $32 million in sales tax revenue from its “other” category in the year to date accounting from December 2024, which was the second largest category behind $37 million from “Shops-Gift, etc.”
”}]] The city of Manitou Springs is taking steps to lower its retail marijuana sales tax from 10% to 5% in a bid to retain competitiveness with newly-allowed recreational sales in Read More
