Lafayette may follow in Boulder's footsteps to harness the revenue potential of the burgeoning retail marijuana industry.
City staff members presented the Lafayette City Council on Tuesday night with the potential ballot language for an excise tax on wholesale and retail marijuana sales.
The tax, as drafted, would mirror the 5 percent wholesale and 3.5 percent retail tax passed by Boulder voters in November.
“Boulder basically did the exact same rate, with the provision that it could increase at a later date,” said Phillip Patterson, Lafayette community development director.
Lafayette's proposed ballot language allows the council to adjust the tax rate at its discretion, so long as the rate does not exceed 10 percent.
The council will review the ballot language prior to voting on a resolution to put the issue before voters on the November ballot.
By law, the resolution is required to include a dollar amount that is expected to be generated by the new tax in the first year. City employees are working on that estimate.
In February, the City Council placed an eight-month moratorium on any marijuana-related retail and cultivation businesses in Lafayette.
Council members said it was a necessary "time-out" for the city to take while the state grapples with how to implement Amendment 64, which allows adults 21 and older in Colorado to possess and use small amounts of marijuana.
To view the proposed marijuana tax ballot language, visit tinyurl.com/nrb22yw.