Tax and Marijuana

Sales Tax

All sales to the end user of marijuana, marijuana products and accessories are subject to the Wheat Ridge sales tax. The State of Colorado rules may differ. View the Colorado tax page for information about state taxes.

Use Tax

All businesses, including marijuana businesses, in Wheat Ridge may incur use tax. It is a make-up tax when a lawfully collected local tax hasn't been paid. It is not a double tax! Credit is given for paying another city's tax, such as Denver's if that's where you took title to a purchase. Be most attentive to invoices from out of state and internet vendors for no-tax or state-only tax situations. There is a detailed tutorial on the How To page about how to determine if and how much use tax is owed.

Use tax is the single largest recovery in audits conducted by the City. Being pro-active now saves money later because all use tax is viewed as due in the month after the month you bought something, so interest of one percent a month begins then. Tax Staff may be contacted for personal tutoring about use tax or for help with a voluntary disclosure.

Be Use-Tax Aware

  • Energy used in production is taxable in Wheat Ridge.
  • Only packaging and labeling that directly encloses a product or is required by regulation is exempt in Wheat Ridge. 
  • RFID tags are taxable in Wheat Ridge.
  • All equipment used in business is taxable in Wheat Ridge. There isn't a manufacturer's exemption.
  • Safety and break-in alarm monitoring is taxable in Wheat Ridge.