Article Summary
Monthly marijuana sales in Colorado topped $100 million for the first time in August,2015,with $59.2 million in recreational sales and $41.4 million in medical sales.Colorado has levied three types of state taxes on recreational-use marijuana: a 2.9% standard sales tax,a 10% special marijuana sales tax,and a 15% excise tax on wholesale marijuana transfers.The 15% excise tax is earmarked for school construction projects.In August,recreational-use taxes and fees totaled $11.2 million and medical taxes and fees were $2 million,bringing total revenue-to-date for the year to over $86 million.
-Refer to the Article Summary.Colorado taxes marijuana with a 12.9% sales tax on buyers and a 15% wholesale excise tax on producers,or a total tax of 27.9% Suppose the actual burden of the tax falls 80 percent on consumers and 20 percent on producers.In this case,consumers will actually bear the tax burden of about ________ percent of the selling price and producers will actually bear the tax burden of ________ percent of the selling price.

Question

Quizplus · Accepted Answer

The actual burden of the tax on consumers can be calculated as: 
(0.8) x (27.9%) = 22.32% of the selling price 
The actual burden of the tax on producers can be calculated as: 
(0.2) x (27.9%) = 5.58% of the selling price 
Therefore, consumers will bear about 22% of the tax burden and producers will bear about 6% of the tax burden.

Article Summary Monthly Marijuana Sales in Colorado Topped $100 Million for the for the First