During a recent government meeting, the Town of Wellington's Finance Director, Nick Redavid, presented Ordinance Number 9-2024, which proposes an increase in the town's marijuana sales tax from 3.5% to the maximum allowable rate of 5%. This adjustment follows the approval of recreational marijuana sales by residents in the 2021 general election, which also established a special marijuana tax.

The current tax structure includes the town's standard sales tax of 3%, a county sales tax of 0.8%, a state sales tax of 2.9%, and a state marijuana sales tax of 15%. The revenue generated from the marijuana sales tax is intended to fund the construction of a new community or recreation center, as well as general operating expenses, as determined annually by the town.

Redavid noted that initial discussions regarding the allocation of these funds indicated uncertainty about reliable revenue estimates. Consequently, it was recommended that the revenue be directed to the general fund during the early years of tax collection to better assess its financial impact. Currently, the revenues are included in the general fund's balance, which encompasses projections for 2024 and 2025.

To protect the confidentiality of the sole contributing business, the town has opted not to disclose specific revenue figures from the marijuana special sales tax. However, a comparative report from the Colorado Municipal League highlighted varying rates in nearby municipalities, with Berthoud at 7%, Boulder at 3.5% plus a 5% excise tax, and Fort Collins at 0%.

The proposed increase to 5% aims to enhance the town's revenue stream while aligning with the maximum tax rate authorized by the original ballot measure.