SB 25-268

Senate Bill 25-268, which has been signed into law in Colorado, makes several changes related to how money from the marijuana tax fund is used and distributed. It removes a requirement for $3 million annually to be allocated to the University of Colorado for a specific treatment program and stops a planned transfer of $20 million to public schools. Additionally, it adjusts the distribution of retail marijuana sales taxes by increasing the state's share from 90% to 96.5%, while reducing local governments' share from 10% to 3.5%. This change will be reviewed in late 2027 or early 2028 to ensure it remains appropriate. In practice, this means that starting July 1, 2025, less money will go directly to local communities and the University of Colorado from marijuana tax revenues, while more funds will stay with the state.

Official Summary

For state fiscal years commencing on or after July 1, 2025, the act repeals the requirement that the general assembly annually appropriate $3 million from the marijuana tax cash fund (fund) to the board of regents of the university of Colorado for the implementation of the medication-assisted treatment expansion pilot program (program) but allows the general assembly to choose to appropriate money for the implementation of the program. Accordingly, the cash funds appropriation from the fund made in the general appropriation act for the 2025-26 state fiscal year for this purpose is decreased by $3 million. The act also repeals the requirement that the state treasurer transfer $20 million from the fund to the public school capital construction assistance fund on June 1, 2026. Finally, beginning July 1, 2025, the act changes the apportionment of the proceeds collected from the retail marijuana sales tax (tax revenue) between the state and local governments so that local governments receive 3.5% rather than 10% of the tax revenue and the state retains 96.5% rather than 90% of the tax revenue. The 6.5% increase of the tax revenue that the state retains is apportioned to the fund. On or after November 1, 2027, but before April 1, 2028, the joint budget committee is required to review the percentage of the tax revenue that is allocated to local governments to determine whether the percentage continues to be appropriate and recommend any necessary modifications to the general assembly. (Note: This summary applies to this bill as enacted.)

Related Legislation

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