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MANITOU SPRINGS, Colo. (KOAA) — The legalization of recreational marijuana sales in Colorado Springs may be taking a toll on a nearby city. The Manitou Springs City Council is getting set to vote on cutting an additional sales tax for recreational marijuana and recreational marijuana products in half.

Recreational sales started in Colorado Springs in April after voters gave the green light not once, but twice, including a special election. There is an additional 5 percent sales tax on recreational marijuana in Colorado Springs.

The City of Manitou Springs approved an additional 5 percent sales tax on recreational marijuana in 2013, but the city council increased that to 10 percent in January of 2022. The City Council will be voting Tuesday night in a second reading for an ordinance that would return the additional sales tax to 5 percent.

There are only two shops in Manitou Springs, Maggie’s Farm and Starbuds. The owner and founder of Maggie’s Farm, Bill Conkling, tells News5 his business was the single operator that requested Manitou Springs lower taxes.

“The despair in our pricing has already caused a 30 percent drop in our traffic and our revenue, with more stores still to come in Colorado Springs,” Conkling said during a May 20 city council meeting. “it doesn’t seem to matter how much we cut our pricing… we Googled and the first thing we see is, ‘why go to Manitou when the tax is double?'”

Due to state law, the city can’t share specific revenue information on marijuana sales tax because the town has fewer than three stores, so it isn’t clear exactly how much the city has benefited over the years from recreational sales. The marijuana business as a whole has been experiencing a decline in Colorado in recent years.

“[I’m] thankful for our partnership with Manitou and for their response of my ask to lower taxes,” Conkling wrote to News5. “Our lowest pricing is about to get lower, so we’re very pleased with the leveling of taxes across the Springs area.”

If the ordinance is passed, the new tax rate of 5 percent will take effect on June 9.

Strong to severe thunderstorms Monday afternoon ahead of next cold front

Strong to severe thunderstorms Monday afternoon will be followed by a strong cold front Monday night, and widespread rain into the overnight hours.

Strong to severe thunderstorms Monday afternoon ahead of next cold front
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“}]] The legalization of recreational marijuana sales in Colorado Springs may be taking a toll on a nearby city. The Manitou Springs City Council is getting set to vote on cutting…  Read More  

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