Back to Colorado

HB26-1409 • 2026

Marijuana Tax Cash Fund Distributions

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 retai

Education Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. K. Brown, Rep. E. Sirota, Sen. J. Bridges, Sen. B. Kirkmeyer, Rep. R. Taggart, Sen. J. Amabile, Rep. M. Carter
Last action
2026-06-04
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Marijuana Tax Cash Fund Distributions

Current law requires 3.5% of the gross retail marijuana sales tax revenue to be distributed to local governments.

What This Bill Does

  • 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.)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.002

Second Reading

Passed [**]

Plain English: HB1409_L.002 Amendment No.

  • HB1409_L.002 Amendment No.
  • ___________ HB26-1409 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Benavidez 1 Amend reengrossed bill, page 2, line 18, after "2026," insert "AND ON AND 2 AFTER JULY 1, 2027,".
  • 3 Page 3, line 16, after "2026," insert "BUT BEFORE JULY 1, 2027,".
  • ** *** ** *** ** LLS: Jacob Bennington x2371

Bill History

  1. 2026-06-04 Governor

    Governor Signed

  2. 2026-06-03 Governor

    Sent to the Governor

  3. 2026-06-03 Senate

    Signed by the President of the Senate

  4. 2026-06-03 House

    Signed by the Speaker of the House

  5. 2026-04-28 House

    House Consideration of First Conference Committee Report result was to Adopt Committee Report - Repass

  6. 2026-04-24 Senate

    Senate Consideration of First Conference Committee Report result was to Adopt Committee Report - Repass

  7. 2026-04-17 House

    House Considered Senate Amendments - Result was to Not Concur - Request Conference Committee

  8. 2026-04-16 Senate

    Senate Third Reading Passed - No Amendments

  9. 2026-04-15 Senate

    Senate Second Reading Special Order - Passed with Amendments - Floor

  10. 2026-04-14 Senate

    Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole

  11. 2026-04-13 Senate

    Introduced In Senate - Assigned to Appropriations

  12. 2026-04-11 House

    House Third Reading Passed - No Amendments

  13. 2026-04-10 House

    House Third Reading Laid Over Daily - No Amendments

  14. 2026-04-09 House

    House Second Reading Special Order - Passed - No Amendments

  15. 2026-04-08 House

    House Second Reading Special Order - Laid Over Daily - No Amendments

  16. 2026-04-07 House

    House Committee on Appropriations Refer Unamended to House Committee of the Whole

  17. 2026-04-02 House

    Introduced In House - Assigned to Appropriations

Official Summary Text

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.)

Current Bill Text

Read the full stored bill text
HOUSE BILL 26-1409
BY REPRESENTATIVE(S) Brown and Sirota, Taggart, Carter
also SENATOR(S) Bridges and Kirkmeyer, Amabile.
CONCERNING THE DISTRIBUTION OF MONEY COLLECTED FROM THE RETAIL
MARIJUANA SALES TAX.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 39-28.8-203, amend
(l)(a)(I) and (l)(b)(I.6); and add (l)(b)(I.7) as follows:
39-28.8-203. Disposition of collections -definitions.
( 1) The proceeds of all money collected from the retail marijuana
sales tax are initially credited to the old age pension fund created in section
1 of article XXIV of the state constitution in accordance with sections 2 (a)
and 2 (f) of article XXIV of the state constitution and thereafter are
transferred to the general fund in accordance with section 7 of article XXIV
of the state constitution. For each fiscal year in which a tax is collected
pursuant to this part 2, an amount shall be appropriated or distributed from
the general fund as follows:
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
(a) (I) Before July 1, 2017, an amount equal to fifteen percent of the
gross retail marijuana sales tax revenue collected by the department is
apportioned to local governments. On and after July 1, 2017, but before July
1, 2025, an amount equal to ten percent of the gross retail marijuana sales
tax revenue collected by the department is apportioned to local
governments. On and after July 1, 2025, BUT BEFORE JULY 1, 2026, an
amount equal to three and one-half percent of the gross retail marijuana
sales tax revenue collected by the department is apportioned to local
governments. The city or town share is apportioned according to the
percentage that retail marijuana sales tax revenue collected by the
department within the boundaries of the city or town bear to the total retail
marijuana sales tax revenue collected by the department. The county share
is apportioned according to the percentage that retail marijuana sales tax
revenue collected by the department in the unincorporated area of the
county bear to total retail marijuana sales tax revenue collected by the
department.
(b) (1.6) On and after July 1, 2025, BUT BEFORE JULY 1, 2026, of the
ninety-six and one-half percent of the gross retail marijuana sales tax
revenue in the general fund remaining after the allocation to local
governments required by subsection (l)(a)(I) of this section is made, the
state treasurer shall retain fourteen and fifty-one one-hundredths percent in
the general fund for use for any lawful purpose and shall transfer from the
general fund:
(1.7) ON AND AFTER JULY 1, 2026, THE STATE TREASURER SHALL
RETAIN FOURTEEN PERCENT OF THE GROSS RETAIL MARIJUANA SALES TAX
REVENUE IN THE GENERAL FUND FOR USE FOR ANY LAWFUL PURPOSE AND
TRANSFER:
(A) SEVENTY-THREE AND SEVENTEEN ONE-HUNDREDTHS PERCENT
TO THE MARIJUANA TAX CASH FUND;
(B) ELEVEN AND THIRTY-THREE ONE-HUNDREDTHS PERCENT TO THE
STATE PUBLIC SCHOOL FUND CREATED IN SECTION 22-54-114 ( 1) FOR USE AS
SPECIFIED IN SECTION 22-54-139 (3); AND
( C) ONE AND FIFTY ONE-HUNDREDTHS PERCENT TO THE MARIJUANA
CASH FUND CREATED IN SECTION 44-10-801 (l)(a).
PAGE 2-HOUSE BILL 26-1409
SECTION 2. In Colorado Revised Statutes, 39-28.8-501, add (5)(c)
as follows:
39-28.8-501. Marijuana tax cash fund -creation -distribution
-legislative declaration -repeal.
(5) (c) ON JUNE 30, 2027, AND ON EACH JUNE 30 THEREAFTER, THE
STATE TREASURER SHALL TRANSFER FROM THE FUND TO THE STATE PUBLIC
SCHOOL FUND CREATED IN SECTION 22-54-114 ( 1) AN AMOUNT EQUAL TO
THE DIFFERENCE BETWEEN THE BALANCE OF THE FUND AND:
(I) FIFTEEN PERCENT OF THE AMOUNT THAT THE GENERAL ASSEMBLY
APPROPRIATED FROM THE FUND IN THE APPLICABLE FISCAL YEAR; AND
(II) THE AMOUNT OF THE FUND, IF ANY, DESIGNATED BY THE
GENERAL ASSEMBLY IN THE GENERAL APPROPRIATION BILL OR BY SEP ARA TE
BILL TOCONSTITUTEALLORAPARTOFTHEEMERGENCYRESERVEPURSUANT
TO SECTION 24-77-104 (2) FOR THE APPLICABLE STATE FISCAL YEAR.
SECTION 3. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
PAGE 3-HOUSE BILL 26-1409
preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
Jul~
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED ~k -r-~ ~ L(--fi\ 2.02'::. q,-t 1-z_:~or
( ate and Time)
PAGE 4-HOUSE BILL 26-1409