Marijuana sales licensees will see three changes to retail excise taxes take effect Jan. 1. The Colorado Department of Revenue says the changes will provide additional clarity on the taxes paid by retail sellers.

Beginning at the start of the year, a tax will no longer be collected for contaminated product for extraction, but two new excise taxes will be collected on bud allocated for extraction and trim allocated for extraction.

“We continually strive for voluntary compliance of all applicable tax laws, as well as a fair and inclusive rulemaking process,” Mike Hartman, director of the Colorado Department of Revenue, said in a press release. “In this instance, we listened to industry feedback during emergency rulemaking and were able to find a solution that we believe will maximize both the needs of the industry and the best interests of the state’s residents.”

Excise tax is imposed on the first sale or transfer from a retail marijuana cultivation facility to a retail marijuana store at 15 percent on the average market rate, according to the Tax Foundation.

For more information, visit the Taxation Division.