{"id":28182,"date":"2019-08-02T11:57:18","date_gmt":"2019-08-02T17:57:18","guid":{"rendered":"https:\/\/www.skyhinews.com\/?p=59166"},"modified":"2019-08-02T11:57:18","modified_gmt":"2019-08-02T17:57:18","slug":"judge-squashes-lawsuit-seeking-to-reverse-grand-countys-marijuana-taxes","status":"publish","type":"post","link":"https:\/\/alwaysmountaintime.com\/kift\/local-news\/judge-squashes-lawsuit-seeking-to-reverse-grand-countys-marijuana-taxes\/","title":{"rendered":"Judge squashes lawsuit seeking to reverse Grand County\u2019s marijuana taxes"},"content":{"rendered":"<p>A lawsuit seeking to reverse Grand County\u2019s voter-approved 5% sales tax on retail marijuana has gone up in smoke.<\/p>\n<p>Grand County District Judge Mary Hoak dismissed David Michel\u2019s lawsuit against the Grand County Board of County Commissioners in a May 19 ruling recently obtained by the Sky-Hi News. Because the case was dismissed with prejudice, it cannot come back before the court.<\/p>\n<p>In the lawsuit, <a href=\"https:\/\/www.skyhinews.com\/news\/county-faces-lawsuit-following-approval-of-marijuana-ballot-measures\/\">Michel contested two ballot questions<\/a> \u2014 one pertaining to the 5% tax on retail marijuana sales and another that put a 5% excise tax on the first sale or transfer of unprocessed retail marijuana by a cultivation facility. Both passed in November 2018.<\/p>\n<p>Michel challenged the voter-approved taxes by claiming the ballot questions contained misleading information that failed to accurately state certain financial information and the fiscal impact of the taxes.<\/p>\n<p>Reached over the phone, Michel, general counsel for IgadI, a marijuana dispensary in Tabernash, didn\u2019t want to comment on the case.<\/p>\n<p>\u201cThe judge\u2019s opinion speaks for itself,\u201d he said in response to questions about judge\u2019s ruling.<\/p>\n<p>Michel emphasized that he filed on his own behalf, as a county voter, and he said the lawsuit has nothing to do with IgadI, which boasts having \u201cthe largest observable marijuana grow in the world,\u201d in addition to its retail sales floor and product sales through the dispensary and its \u201cdispensing partners around the state.\u201d<\/p>\n<p>In places, the county sought to defeat Michel&#8217;s suit by beating him on procedure and technicalities, including a rather dubious claim that he failed to properly identify the commission in his complaint against \u201cThe Grand County Board of County Commissioners.\u201d<\/p>\n<p>Another misstep might have come up when Michel served the commissioners instead of the clerk, as he was supposed to do, but that fact by itself was not enough to convince Hoak to discard the lawsuit. Instead, the judge granted the commissioners\u2019 request to dismiss based on how she interpreted the merits of Michel\u2019s case.&nbsp;<\/p>\n<p>\u201cThe court, therefore, finds that even if Michel is correct that the BOCC provided inaccurate or misleading fiscal information, such fact does not state a claim for relief because the BOCC is not required to provide any fiscal information at all under section 1-7-902 and Michel has not cited any other statue requiring such information,\u201d Hoak wrote before explaining that Michel\u2019s attempt to argue the lawsuit on another precedent set by the Colorado Supreme Court was just as futile.<\/p>\n<p>In the ruling, Judge Hoak explained that the Supreme Court case Michel cited involved an initiative petition to amend the Colorado Constitution, and a board composed of the secretary of state, director of the legislative drafting office and attorney general was required to prepare a summary of the proposed amendment. The summary they crafted included language about the \u201cfiscal impact,\u201d and that formed the basis of the dispute, Hoak added.&nbsp;<\/p>\n<p>\u201cUltimately, the Colorado Supreme Court found the fiscal impact was \u2018without an adequate basis\u2019 and reversed the board\u2019s decision to include it in the summary,\u201d the judge summarized.<\/p>\n<p>But in Michel\u2019s case, the judge found he didn\u2019t demonstrate the \u201cfiscal impact\u201d described in the Supreme Court case was the same as the \u201cfiscal information\u201d at the heart of his lawsuit against the county commissioners and dismissed the lawsuit.<\/p>\n<p>In response to Michel\u2019s accusations the ballot questions contained false or misleading information, Grand County Commissioner Rich Cimino defended the information presented to voters in November 2018.<\/p>\n<p>\u201cI will stand by the estimates we provided were the best available based on the info we were able to gather,\u201d Cimino said. \u201cWe respect the judge\u2019s decision, and we are happy to move forward.\u201d<\/p>\n<div class=\"swift-infobox p402_hide aligncenter\">\n<div class=\"module module-promo card shadow-sm\">\n<div class=\"card-header\"><i class=\"fas fa-info-circle\"><\/i> Timeline of Dispute<\/div>\n<div class=\"card-body\">\n<p class=\"STND-STND BriefText ListBullet\">Aug. 21, 2018 \u2013 The Board of County Commissioners approves ballot measures 1A and 1B. Measure 1A increases sales tax on retail marijuana by 5 percent and measure 1B increases excise tax on retail marijuana by 5 percent.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Oct. 23 \u2013 IgadI general counsel David Michel approaches the county commissioners with his concerns regarding the financial impact statements. Measure 1A claims to increase tax revenue by $310,000 and measure 1B claims to increase tax revenue by $155,000.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Nov. 6 \u2013 Election Day. Measure 1A passes by 693 votes and 1B passes by 537 votes.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Nov. 21 \u2013 Election results are certified by the county clerk.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Dec. 1 \u2013 Michel files contest of measures 1A and 1B in the Grand County District Court on the basis that the financial impact statements were misleading to voters and therefore the ballot measures should be overturned.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Dec. 11 \u2013 Michel serves the county commissioners with his contest of measures 1A and 1B.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Dec. 18 \u2013 County files motion to dismiss the lawsuit on the grounds of lack of jurisdiction and failure to state a claim upon which relief can be granted.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Dec. 19 \u2013 Dill Dill Carr Stonbracker &amp; Hutchings, P.C. files entry of appearance on behalf of Michel.<\/p>\n<p class=\"STND-STND BriefText ListBullet\">Jan. 8, 2019 \u2013 Dill Dill Carr Stonbraker &amp; Hutchings, P.C. files response to motion to dismiss on behalf of Michel.<\/p>\n<p>Jan. 14, 2019 \u2014 County files reply to the response to the motion to dismiss.<\/p>\n<p>May 19, 2019 &#8211; Judge Hoak dismisses the case.<\/p>\n<\/p><\/div>\n<p><!-- END .card-body --> <\/div>\n<p><!-- END .module --> <\/div>\n<p><!-- END .swift-infobox --> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>A lawsuit seeking to reverse Grand County\u2019s voter-approved 5% sales tax on retail marijuana has gone up in smoke. Grand County District Judge Mary Hoak dismissed David Michel\u2019s lawsuit against the Grand County Board of County Commissioners in a May 19 ruling recently obtained by the Sky-Hi News. Because the case was dismissed with prejudice, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[97],"tags":[],"class_list":{"0":"post-28182","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-local-news"},"acf":[],"publishpress_future_action":{"enabled":false,"date":"2026-06-21 18:36:44","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"KIFT - The LIFT FM","distributor_original_site_url":"https:\/\/alwaysmountaintime.com\/kift","push-errors":false,"_links":{"self":[{"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/posts\/28182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/comments?post=28182"}],"version-history":[{"count":0,"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/posts\/28182\/revisions"}],"wp:attachment":[{"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/media?parent=28182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/categories?post=28182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kift\/wp-json\/wp\/v2\/tags?post=28182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}