I feel like this article assumes a ton of context. I guess Colorado has a tax free day today? I had to infer that from article, since it doesn't explain it, just references some "accounting error". Which might be the prediction being off? Who knows!
Yes, CO has a tax free day on cannabis only. My understanding is they reaped too much in taxes and their laws are such that they have to give the overage back. The tax-free day is a way to do that.
That's some bizarre logic. Tax-free day doesn't "give back" anything, it just slows down the rate at which they exceed what they thought was acceptable.
You're both right. There's a tax-free day to slow down the amount of tax brought in, but state law does require returning unexpected tax windfalls that exceed inflation and population growth. Wikipedia has a good overview: https://en.wikipedia.org/wiki/Taxpayer_Bill_of_Rights
Yes, from what I understand the Colorado law has a requirement that taxes justify their rate based on the revenue they will raise. This tax far exceeded the revenue, and so the constitution (or law or both) requires "payback" to the people for the excess tax revenue-- this comes in the form of suspending the tax until it can be lowered... and in this case this means the tax will be suspended for one day until the new lower tax goes into effect.