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

Joint Budget Committee. Current law requires 3.5% of the gross retail marijuana sales tax revenue to be distributed to local governments. The bill eliminates the distribution to local governments and allocates the gross retail marijuana sales tax revenue as follows: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 bill also directs the state treasurer to transfer from the fund to the state public school fund at the end of each fiscal year, 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 the reengrossed version of this bill as introduced in the second house.)

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