Keeping Law SimpleLegislation, clearly explained
Back to Colorado
Colorado2026Enacted

HB26-1409

Changes to How Marijuana Sales Tax Money Is Shared

Last scannedAug 24, 2026, 8:22 AM

In one sentence

Starting July 1, 2026, this law stops sending marijuana sales tax money to local governments and instead sends it to state funds for schools, general use, and emergency reserves.

What it does

  • Eliminates the current rule that gives 3.5% of gross retail marijuana sales tax revenue to cities and counties starting July 1, 2026.
  • Requires 73.17% of the gross retail marijuana sales tax revenue to go into the Marijuana Tax Cash Fund on and after July 1, 2026.
  • Directs 11.33% of the gross retail marijuana sales tax revenue to the State Public School Fund for use as specified in state law.
  • Allocates 14% of the gross retail marijuana sales tax revenue to the General Fund for any lawful purpose.
  • Sends 1.5% of the gross retail marijuana sales tax revenue to the Marijuana Cash Fund.
  • Orders the state treasurer to transfer extra money from the Marijuana Tax Cash Fund to schools on June 30, 2027, and each year after if the fund balance is higher than a specific limit.

Who it affects

  • Local governments that previously received a share of marijuana sales taxes
  • The State Public School Fund and public schools in Colorado
  • The state treasurer who manages these money transfers
  • State agencies using the General Fund

Limits and unknowns

  • The law does not specify an exact dollar amount because it depends on how much tax is collected each year.
  • Future transfers to schools depend on decisions the General Assembly makes about emergency reserves and appropriations from the fund.
  • The text does not explain what happens if total tax collections drop significantly below expected levels.

Plain language

Terms to know

Marijuana Tax Cash Fund
A specific state account that holds most of the marijuana sales tax revenue for future use.
General Fund
The main bank account used by the state government to pay for general services and operations.
State Public School Fund
A dedicated fund that provides money specifically for public education in Colorado.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill textStored full record

Official summary

Current law requires 3.5% of the gross retail marijuana sales tax revenue to be distributed to local governments. The act eliminates the distribution to local governments and allocates the gross retail marijuana sales tax revenue as follows, on and after July 1, 2026: 73.17% to the marijuana tax cash fund (fund); 11.33% to the state public school fund; 1.5% to the marijuana cash fund; and 14% to the general fund. The act also directs the state treasurer to transfer from the fund to the state public school fund on June 30, 2027, and on each June 30 thereafter, an amount equal to the difference between the balance of the fund and: 15% of the amount that the general assembly appropriated from the fund in that fiscal year; and Any amount of the fund designated to be part of the emergency reserve for that fiscal year. (Note: This summary applies to this bill as enacted.)

Official activity

Bill history

  1. Governor SignedGovernor
  2. Sent to the GovernorGovernor
  3. Signed by the President of the SenateSenate
  4. Signed by the Speaker of the HouseHouse
  5. House Consideration of First Conference Committee Report result was to Adopt Committee Report - RepassHouse
  6. Senate Consideration of First Conference Committee Report result was to Adopt Committee Report - RepassSenate
  7. House Considered Senate Amendments - Result was to Not Concur - Request Conference CommitteeHouse
  8. Senate Third Reading Passed - No AmendmentsSenate
  9. Senate Second Reading Special Order - Passed with Amendments - FloorSenate
  10. Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the WholeSenate
  11. Introduced In Senate - Assigned to AppropriationsSenate
  12. House Third Reading Passed - No AmendmentsHouse
  13. House Third Reading Laid Over Daily - No AmendmentsHouse
  14. House Second Reading Special Order - Passed - No AmendmentsHouse
  15. House Second Reading Special Order - Laid Over Daily - No AmendmentsHouse
  16. House Committee on Appropriations Refer Unamended to House Committee of the WholeHouse
  17. Introduced In House - Assigned to AppropriationsHouse

Changes

Amendments

1 stored

L.002

This amendment adds a new time period starting on July 1, 2027, to the bill's rules about distributing marijuana tax money.