5.70.010 Tax imposed.
A. Unprocessed Retail Marijuana. Commencing January 1, 2016, there is hereby imposed an excise tax of five percent (5%) on the average market rate of unprocessed retail marijuana upon the first sale or transfer of such unprocessed retail marijuana from a retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility, other retail marijuana cultivation facility, or any other purchaser or transferee if the transaction is between affiliated retail marijuana business licensees; and, an excise tax of five percent (5%) on the contract price of unprocessed retail marijuana upon the first sale or transfer of such unprocessed retail marijuana from a retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility, other retail marijuana cultivation facility, or any other purchaser or transferee if the transaction is between unaffiliated retail marijuana business licensees. As used in this chapter, the “average market rate” means the amount determined by the State of Colorado pursuant to C.R.S. § 39-28.8-101 and “contract price” shall have such meaning as set forth in C.R.S. § 39-28.8-101 and 302, as such statutes may be amended. This excise tax was approved by majority vote of registered electors of Parachute on November 2, 2015.
Notwithstanding, this excise tax shall not apply to transfers of unprocessed retail marijuana from a retail marijuana cultivation facility to:
1. An affiliated retail marijuana cultivation facility located in the Town of Parachute in accordance with the Colorado Marijuana Rules (1 CCR 212-3); however, the subject excise tax shall then apply to any subsequent sale or transfer from the retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility, affiliated retail marijuana cultivation facility located outside the Town of Parachute, unaffiliated retail marijuana cultivation facility, or any other purchaser or transferee, as set forth above.
2. A retail marijuana cultivation facility located outside the Town of Parachute if such transfer is for the purpose of decontamination in accordance with the Colorado Marijuana Rules (1 CCR 212-3) and such unprocessed retail marijuana is transferred back to the originating retail marijuana cultivation facility located in the Town of Parachute within thirty (30) days. The subject excise tax shall then apply to any subsequent sale or transfer from the retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility, affiliated retail marijuana cultivation facility located outside the Town of Parachute, unaffiliated retail marijuana cultivation facility, or any other purchaser or transferee, as set forth above. In the event the unprocessed retail marijuana is not transferred back to a retail marijuana cultivation facility in the Town within thirty (30) days as provided by this section, the subject excise tax shall apply to the transfer for the purpose of decontamination contemplated by this section and at the average market rate of such unprocessed retail marijuana.
B. Unprocessed Medical Marijuana. Commencing January 1, 2017, there is hereby imposed an excise tax of five percent (5%) on the contract price of unprocessed medical marijuana upon the first sale or transfer of such unprocessed medical marijuana from an optional premises cultivation operation to a medical marijuana center, medical marijuana-infused products manufacturer, other optional premises cultivation operation, or any other purchaser or transferee. This excise tax was approved by majority vote of registered electors of Parachute on November 8, 2016. Notwithstanding, this excise tax shall not apply to transfers of such unprocessed medical marijuana from an optional premises cultivation operation to:
1. An affiliated optional premises cultivation operation located in the Town of Parachute in accordance with the Colorado Marijuana Rules (1 CCR 212-3); however, the subject excise tax shall then apply to any subsequent sale or transfer from the optional premises cultivation operation to a medical marijuana center, medical marijuana-infused products manufacturer, affiliated optional premises cultivation operation located outside the Town of Parachute, unaffiliated optional premises cultivation operation, or any other purchaser or transferee, as set forth above.
2. An optional premises cultivation operation located outside the Town of Parachute if such transfer is for the purpose of decontamination in accordance with the Colorado Marijuana Rules (1 CCR 212-3) and such unprocessed medical marijuana is transferred back to the originating optional premises cultivation operation located in the Town of Parachute within thirty (30) days. The subject excise tax shall then apply to any subsequent sale or transfer from the optional premises cultivation operation to a medical marijuana center, medical marijuana-infused products manufacturer, affiliated optional premises cultivation operation located outside the Town of Parachute, unaffiliated optional premises cultivation operation, or any other purchaser or transferee, as set forth above. In the event the unprocessed medical marijuana is not transferred back to an optional premises cultivation operation in the Town within thirty (30) days as provided by this section, the subject excise tax shall apply to the transfer for the purpose of decontamination contemplated by this section and at the average market rate of such unprocessed medical marijuana.
C. Manufactured Marijuana Products – Retail. Commencing January 1, 2017, there is hereby imposed an excise tax of five percent (5%) on the contract price of marijuana products manufactured by a retail marijuana product manufacturing facility upon the first sale or transfer of such product from a retail marijuana manufacturing facility to a retail marijuana store, other retail marijuana product manufacturing facility, a retail marijuana cultivation facility, or any other purchaser or transferee. This excise tax was approved by majority vote of registered electors of Parachute on November 8, 2016.
D. Manufactured Marijuana Products – Medical. Commencing January 1, 2017, there is hereby imposed an excise tax of five percent (5%) on the contract price of marijuana products manufactured by a medical marijuana-infused products manufacturer upon the first sale or transfer of such product from a medical marijuana-infused products manufacturer to medical marijuana center, other medical marijuana-infused products manufacturer, optional premises cultivation operation, or any other purchaser or transferee. This excise tax was approved by majority vote of registered electors of Parachute on November 8, 2016. (Ord. 736 §2, 2017; Amended Ord. 806 §2, 2023)