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

The official text does not provide an effective date other than the start dates for distribution (July 1, 2026) and transfer calculations (June 30, 2027).

Changes to How Marijuana Sales Tax Money Is Shared

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 This Bill 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 Names or 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

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.

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.

Amendments

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

L.002

Second Reading

Passed [**]

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

It updates page 2 of the bill to include dates after July 1, 2027.

The amendment text only shows where new words are added but does not explain what specific rules apply during this new time period.
Without seeing the full context of page 3 or other parts of the bill, it is unclear exactly how money will be handled after July 1, 2027.

Bill History

2026-06-04 Governor
Governor Signed
2026-06-03 Governor
Sent to the Governor
2026-06-03 Senate
Signed by the President of the Senate
2026-06-03 House
Signed by the Speaker of the House
2026-04-28 House
House Consideration of First Conference Committee Report result was to Adopt Committee Report - Repass
2026-04-24 Senate
Senate Consideration of First Conference Committee Report result was to Adopt Committee Report - Repass
2026-04-17 House
House Considered Senate Amendments - Result was to Not Concur - Request Conference Committee
2026-04-16 Senate
Senate Third Reading Passed - No Amendments
2026-04-15 Senate
Senate Second Reading Special Order - Passed with Amendments - Floor
2026-04-14 Senate
Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
2026-04-13 Senate
Introduced In Senate - Assigned to Appropriations
2026-04-11 House
House Third Reading Passed - No Amendments
2026-04-10 House
House Third Reading Laid Over Daily - No Amendments
2026-04-09 House
House Second Reading Special Order - Passed - No Amendments
2026-04-08 House
House Second Reading Special Order - Laid Over Daily - No Amendments
2026-04-07 House
House Committee on Appropriations Refer Unamended to House Committee of the Whole
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