MANITOU SPRINGS, Colo. (KRDO) — Manitou Springs City leaders are setting the record straight and answering a popular question when it comes to marijuana sales tax revenues. That amount is not available to the public, and city officials say they are legally obligated to keep it that way.
“We frequently get questions from the public and the news media about the marijuana sales tax,” said Alex Trefry, a spokesperson with the city of Manitou Springs.
There are just two recreational marijuana dispensaries in the city of Manitou Springs, Emerald Fields and Maggie’s Farm. According to state law, providing sales tax revenues to the public would be detrimental to the existing businesses when there are only two.
“If we gave out information or precise information about how much marijuana sales tax is collected by one business. Then the other business can look at that and know precisely how much their competitor sold on a monthly basis,” said Trefrey.
In a Facebook post on Friday, Manitou’s finance director said the policy is set by the Colorado Department of Revenue. According to the department’s own policy, they will only release tax information if there are three or more vendors in a municipality.
“Because once you have three, no one entity can see what their one competitor makes,” said Trefry.
According to Manitou Springs City Code, no more than two recreational marijuana stores are permitted within the city at any given time. The city held a special election last month regarding a third potential dispensary, however, voters shot the idea down.
The city says marijuana sales tax revenues are lumped into the general sales tax on the city’s budget, which totals nearly $8 million for the fiscal year 2021.
Manitou Springs says law prohibits city from releasing marijuana sales tax revenues to the public
