Resources
Understanding the AMR tax issue, why it matters, and what's being done about it.
The Average Market Rate Problem
Colorado's cannabis industry operates under a unique tax structure that includes the Average Market Rate (AMR) - a methodology used to determine the taxable value of cannabis at the wholesale level. For years, operators have been taxed based on AMR calculations that don't reflect actual market conditions.
The result: cannabis businesses across Colorado - cultivators, manufacturers, retailers, and vertically integrated operators - have collectively overpaid by an estimated $100 million or more.
Hundreds of operators. One flawed formula. Millions in overpayment.
Who Is Affected?
This isn't a niche issue. The AMR tax methodology impacts virtually every licensed cannabis operator in Colorado, including:
- Retail cultivation license holders (403R)
- Retail store license holders (402R)
- Retail MIP / Manufacturing license holders (404R)
- Medical cultivation license holders (403)
- Medical center license holders (402)
- Medical MIP license holders (404)
- Vertically integrated operators
- Operators who have exited or surrendered their licenses
Whether you're currently operating or have already left the industry, if you paid taxes under the AMR methodology, you may be affected.
Why a Trade Association?
Individual operators lack the resources and standing to effectively challenge the AMR methodology alone. The Colorado Cannabis Taxpayer Alliance was formed as a 501(c)(4) nonprofit trade association to give operators collective strength - one unified voice backed by the shared experience of hundreds of businesses.
CCTA pursues two parallel paths: supporting legal strategies to challenge the AMR methodology, and policy advocacy to reform it going forward.
For a detailed look at the AMR tax issue, including documentation and ongoing developments, visit the resource below.
Ready to Get Involved?
If the AMR tax has affected your business, the Alliance wants to hear from you.
Join the Alliance