Article Summary State Tax Revenue from Marijuana Sales in Colorado Has Surpassed

Multiple Choice

Article Summary
State tax revenue from marijuana sales in Colorado has surpassed $500 million since its legalization in January 2014. Colorado has imposed three types of state taxes on marijuana: a 2.9% sales tax on medical marijuana, a 15% special sales tax for recreational use, and a 15% excise tax on wholesale marijuana transfers. About half of the accumulated tax revenue has gone to K-12 education, with over $100 million used to fund school construction projects. Twenty-five percent of the tax is being spent on substance abuse prevention and treatment programs.
Source: Katelyn Newman, "Milestoned: Colorado Pot Tax Revenue Surpasses $500 M," usnews.com, July 20, 2017.
-Refer to the Article Summary.Colorado taxes marijuana with a 15% sales tax on recreational-use buyers and a 15% wholesale excise tax on producers, or a total tax of 30% based on the initial selling price.Suppose the actual burden of the tax falls 70 percent on consumers and 30 percent on producers.In this case, consumers will actually bear the tax burden of ________ percent of the selling price and producers will actually bear the tax burden of ________ percent of the selling price.

A) 21; 9
B) 85; 45
C) 15; 15
D) 70; 30