HB 26-1409

House Bill 26-1409 changes how marijuana tax money is distributed in Colorado. Instead of giving 3.5% of the tax revenue to local governments, it now allocates most of the funds (73.17%) to a state fund called the Marijuana Tax Cash Fund and distributes smaller percentages to other state funds like education and general government spending. The bill also ensures that at the end of each year, any leftover money in the Marijuana Tax Cash Fund goes to the public school fund if it exceeds certain limits set by the state. Since the bill has been signed into law, these changes are now in effect.

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; and14% 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; andAny 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.)

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