Bullion, diapers and mushrooms, oh my!
Coming in 2025
When topics arise I think might be interesting to you I often set up a draft post with a title to remind myself. Sometimes the draft is nothing more than a title and I never have time to write the post. I usually have a draft catch-all corner post waiting for additions. I thought about adding these three items to a catch-all corner post but since they all take effect in January 2025 it made sense to bundle them together.
There are a couple of sales tax exemptions and a report on what the city is doing to comply with The Natural Medicine Health Act of 2022 following Colorado voters’ approval to decriminalize “magic mushrooms”.
Let’s dig into the sales tax exceptions first and see if you can save a few bucks.
A DIGNITY SALES TAX EXEMPTION BEGINNING JANUARY 1, 2025
Early this year city council had a workshop discussion about potential ballot questions for the November election. One of the questions was a dignity tax exemption. They decided not to put any of those questions on the ballot but to move ahead with the dignity tax exemption via an ordinance. In June they voted to approve the hygiene or dignity sales tax exemption for products necessary for physical or medical hygiene, such as diapers, menstruation products and incontinence products. This goes into effect January 1, 2025. A state-level exemption occurred in 2023. Staff estimates a reduction in sales tax collection of roughly $43,000 annually. However, they point out that out-of-towners might shop in Lafayette to save money on these items and buy some taxable items during the same shopping trip.
FROM THE STAFF MEMO:
Definitions of Exempt Products
Below are the definitions of products eligible for exemption as outlined in the ordinance:
• Incontinence products and diapers means absorbent cloth or disposable products worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements.
• Menstrual care products means products that are designed to absorb or contain menstrual flow. Menstrual care products include, without limitation, tampons, menstrual pads, sanitary napkins, pantiliners, menstrual sponges, menstrual undergarments, and menstrual cups.
SALES TAX EXEMPTION FOR PRECIOUS METAL BULLION AND COINS BEGINNING JANUARY 1, 2025
At their August workshop Mayor Pro Tem Wong asked if council would be interested in exempting coins and precious metals from the city’s sales tax. The council expressed interest and voted to approve at their December 4th meeting.
FROM THE STAFF MEMO:
Amending Sections 110-122 and 110-147 of the Code of Ordinances to Provide an Exemption from Sales and Use Taxes for Precious Metal Bullion and Coins
Background Information
The City of Lafayette, as a home rule municipality, levies, collects, and enforces sales and use tax on the purchase, use, storage, and consumption of tangible personal property sold at retail in the City and on certain taxable services provided in the City set forth in the Code of Ordinances.
“Precious metal bullion” is defined in Section 110-37 of the Sales and Use Tax Code as follows: “Precious metal bullion means any precious metal, including but not limited to, gold, silver, platinum, palladium, that has been put through a process of refining and is in such a state or condition that its value depends upon its precious metal content and not its form.”
“Coins” is defined in Section 110-37 of the Sales and Use Tax Code as follows: “Coins means monetized bullion or other forms of money manufactured from gold, silver, platinum, palladium or other such metals now, in the future or heretofore designated as a medium of exchange under the laws of this state, the United States or any foreign nation.”
MAGIC MUSHROOM HEALING CENTERS AND GROW ROOMS
Since I pay attention to a variety of topics and meetings I’ve watched three presentations on this subject over the last month or so. I think I have a grasp!
BACKGROUND
In 2022 Colorado voters approved Proposition 122 a citizen-initiated ballot question decriminalizing for personal use these plants and fungi:
dimethyltryptamine (DMT);
ibogaine;
mescaline (excluding peyote);
psilocybin; and
psilocyn.
That ballot question was also designed to create a program to allow these substances to be used by trained therapists.
Natural Medicine Colorado said, "Natural psychedelic medicines are non-addictive and can have profound benefits for people struggling with challenging mental health conditions including depression and anxiety and those struggling to find peace at the end of their lives. Johns Hopkins, UCLA, NYU and other leading research universities have studied psychedelic therapies, and the FDA has granted one natural medicine, psilocybin, 'breakthrough treatment' status for its success with treatment resistant depression, meaning psilocybin has succeeded where other methods have failed."
STATE ACTIONS
A board was created, regulations written and in 2023 Governor Polis signed Senate Bill 23-290 “Natural Medicine Regulation and Legalization” into law. This sets up the framework for a regulated natural medicine program. This covers growing psilocybin & psilocin (mushrooms) and healing centers that administer the mushrooms for therapy purposes. The state is set to issue licenses in January 2025.
LAFAYETTE ACTIONS
Cities cannot prohibit the healing centers nor the cultivation operations. Regulations determining where they can be located and times of operation can be put into place. In anticipation of the state licensing beginning in January, the council approved those regulations this month.
CULTIVATION
Here’s the deal. There can be businesses that grow, process, and test the mushrooms for the healing centers. These will not be for sale to the general public. You will not see magic mushroom stores. Retail sales were not part of the ballot question. It’s possible that all these processes could be in one location, one business that grows, processes, and tests the end product with a connected healing center. Or a business could just handle the cultivation and processing and then sell directly to healing centers.
HEALING CENTERS
As far as the healing centers, just think about some version of a therapist’s office. Our city attorney says the state has detailed regulations on training and other associated requirements and the facilitators’ must be state-licensed. She said Naropa University in Boulder will offer training and certification. However, the November 25th edition of the Boulder Weekly reports that is on hold pending issues related to insurance. (full disclosure: I am the Lafayette correspondent for the Boulder Weekly and reported on Lafayette’s ordinance)
LAFAYETTE REGULATIONS
CULTIVATION
Any business that grows, processes and/or tests will be restricted to industrial zones only. Our industrial zone is out on 120th.
HEALING CENTERS
These can be in industrial and commercial zones, not in residential zones, so not in someone’s home at this time.
All must be at least 1000 ft from schools and daycare centers.
ADDITIONAL REGULATIONS
Public view into these businesses must be restricted
Storage must be in a permanent building (eg: not a shed in the parking lot)
Landlords must authorize the operation of natural medicine businesses on the premises in the lease
Healing centers must be closed by 10 pm unless the participant is unable to leave at that time
Parking lots, doors and walkways must be well-lit with security lighting
SOME INFORMATION ABOUT THIS KIND OF THERAPY
CBS Mornings had a report on a multi-generational group of women from Colorado taking the mushrooms together in a facilitated setting .
“Magic Mushrooms,” Psilocybin and Mental Health
The Johns Hopkins Center for Psychedelic and Consciousness Research Psychedelics Research and Psilocybin Therapy
Mushrooms for Depression? Psilocybin is Showing Promising Results
Want to offer more support? Awesome!
I may not be fully versed in the natural medicine regulations, but living in a single-family home that's likely the closest to a marijuana dispensary in the state, I've closely followed these amendments as they gradually progressed through the Louisville process.
This was particularly intriguing since we reside in the so-called "red-haired stepchild" neighborhood, just across the border from Lafayette. The zoning map that planners and council members used to determine areas eligible for zoning was incorrect for marijuana dispensaries and initially incorrect for the healing center changes.
Why? Because of a school in Lafayette.
Here is what I think based on your notes.
1. It's unlikely we'll see combined healing and cultivation. The cultivation location requirements are something more analogous to a prison.
2. As you note Naropa training is on hold. The state though includes a list of approved training sites includes nine others, two of which are in Oregon.
3. Louisville allows 6am-12pm. Other requirements for healing aka treatment centers are similar.
4. Licenses will be issued by the state. Thus there is no local control or reporting of the licenses or in the event of problems, no ability for the city to refuse to renew a license.
5. Treatments take the centers take 4-6hours per person for a "full journey" Thus these are not going to be high traffic(people/vehicle) locations. There can be a maximum of 6-facilitators in one office, but a facilitator can probably only handle 4x clients per day.
6. The security lighting is in direct conflict with dark sky lighting requirements. Louisville currently doesn't have commercial requirements so for anyone close to a healing center, unless the dark sky lighting is retroactive and doesn't have a opt-out clause for healing centers, there is a clash between city and state or the security lighting stays as long as the license is good.
7. Otherwise, and in general the healing centers are a good thing. The regulations are somewhat rushed by the state and lack final polish, hence Lafayette and Louisville having to pass local ordinances at the last minute...
For anyone interested in more information these are the two websites:
CO Dept. of Natural Medicines: https://dnm.colorado.gov/
CO DORA Natural Medicines: https://dpo.colorado.gov/NaturalMedicine
Also a contributor to Boulder Weekly Govt Watch for Louisville.
++Mark.
What’s the city’s benefit for exempting precious metals from local taxation?