Proposed Class Action - Colorado Marijuana Excise Tax

You've been overpaying.
And the state knew.

Colorado MED licensees may have a claim for refunds of overpaid excise tax — plus 10% annual interest, compounding from the date of first collection.

Years of inflated tax.
Find out if you may have a claim for a refund.

For years, Colorado's MED inflated the marijuana excise tax rate to as much as 17 times what the market actually paid. Their own data team admitted it in writing. The Governor's office reviewed the data and approved publication of the inflated rate anyway. If you held a Colorado MED license, you may have a claim for a refund - with 10% annual interest, going back to the date of first collection.

Legitimate Marijuana Licensees v. Colorado Department of Revenue, et al.

Join the Class - Find Out If You May Have a Claim
$349 What MED published
$20 Actual market rate (admitted by MED)
17x Inflation. On your tax bill.

What the Lawsuit Seeks

If successful, here's what's on the table.

$

Refund of overpaid tax

The case seeks refunds of excise tax allegedly overpaid under the unlawful methodology, going back to the date of first collection.

%

10% annual interest

Mandated by Colorado Constitution Art. X, § 20(1) for unlawful tax collections, calculated from the date of first collection.

Halt to active audits

The lawsuit seeks to stop audit referrals and penalties premised on the alleged unlawful AMR.

Methodology fix going forward

The lawsuit asks the court to require a separate AMR for each statutory category and public quarterly transparency on transaction-level data.

Three claims being filed: TABOR violation · ultra vires conduct · procedural due process violation. Outcomes depend on court rulings; nothing on this page is a guarantee of recovery.


Are You Eligible?

If you held a Colorado MED license - probably yes.

Vertically integrated operators got hit hardest. They're required to use the published AMR for internal transfers, so every dollar of inflation lands directly on their tax bill - no retail buyer to absorb it.


The Smoking Gun

Caught in their own emails.

On March 8, 2025, MED's Data Analytics Manager admitted in writing that the Department was blending categories the regulation requires to be calculated separately - and that the inflation was roughly 17x the actual market rate. Nine days later, after review by the Department's Executive Director and the Governor's office, MED published the inflated rate anyway.

"Ok, so we're mixing two different categories... if you remove the Bud Transfers from the January report, the median is about $20/lb..."
"...If the first-Transfer issue is present here, I would assume it's present in all of the AMR reports." - Jacob Comer, MED Data Analytics Manager, internal email, March 8, 2025

Read the full evidence →

Add Your Name

Two minutes. No commitment.
See if you may have a claim.

If you held a Colorado MED license at any point during the affected period - even if you've since exited the market - you may have a claim. Counsel for the proposed class will review your information and reach out to confirm eligibility.

Join the Class →