Taxes on Marijuana and Marijuana Products

C.R.S. tit. 39, art. 28.8
in effect

C.R.S. § 39-28.8-101 Definitions

39-28.8-101. Definitions. Unless the context otherwise requires, any terms not defined in this article 28.8 have the meanings set forth in article 26 of this title 39. As used in this article 28.8, unless the context otherwise requires: (1) "Affiliated marijuana business licensees" means marijuana business licensees that are owned or controlled by the same or related interests, where "related interests" includes individuals who are related by blood or marriage or entities that are directly or indirectly controlled by an entity or individual or related individuals. (1.5) "Average market rate" means the average price, as determined by the department on a quarterly basis, of all unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities in the state to retail marijuana product manufacturing facilities or retail marijuana stores, less taxes paid on the sales or transfers. An "average market rate" may be based on the purchaser or transferee of unprocessed retail marijuana or on the nature of the unprocessed retail marijuana that is sold or transferred. The "average market rate" must include one or more rates that cover unprocessed marijuana that is allocated to extractions, and the initial rates for these product types must be lower than the rate for unprocessed marijuana that is allocated for direct sale to consumers. (2) "Consumer" means a person twenty-one years of age or older who purchases retail marijuana or retail marijuana products for personal use by persons twenty-one years of age or older but not for resale to others. (2.5) "Contract price" means the invoice price charged by a retail marijuana cultivation facility to each licensed purchaser for each sale or transfer of unprocessed retail marijuana, exclusive of any tax that is included in the written invoice price, and exclusive of any discount or other reduction. In the case of multiple invoices reflecting multiple prices for the same transaction, "contract price" is the highest such price. (3) "Department" means the department of revenue. (4) "Hemp" has the meaning set forth in section 35-61-101 (7). (5) "Local government" means a county, municipality, or city and county. (6) "Medical marijuana store" means an entity licensed by the department to sell marijuana and marijuana products pursuant to section 14 of article XVIII of the state constitution and the "Colorado Marijuana Code", article 10 of title 44, or its predecessor codes. (7) (a) (I) "Retail marijuana" means all parts of the plant of the genus cannabis whether growing or not, the seeds of the plant, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate; (II) "Retail marijuana" includes: (A) A nonintoxicating cannabinoid, as defined in section 44-10-103 (42.5), produced from retail marijuana; (B) A potentially intoxicating cannabinoid, as defined in section 44-10-103 (48.5), produced from retail marijuana; and (C) An intoxicating cannabinoid, as defined in section 44-10-103 (22.5), produced from retail marijuana. cluding marijuana concentrate; (II) "Retail marijuana" includes: (A) A nonintoxicating cannabinoid, as defined in section 44-10-103 (42.5), produced from retail marijuana; (B) A potentially intoxicating cannabinoid, as defined in section 44-10-103 (48.5), produced from retail marijuana; and (C) An intoxicating cannabinoid, as defined in section 44-10-103 (22.5), produced from retail marijuana. (b) "Retail marijuana" does not include hemp, nor does it include fiber produced from the stalks, oil, cake made from the seeds of the plant, sterilized seed of the plant that is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product. (8) "Retail marijuana cultivation facility" means an entity licensed to cultivate, prepare, and package retail marijuana and sell retail marijuana to retail marijuana stores, to retail marijuana product manufacturing facilities, and to other retail marijuana cultivation facilities, but not to consumers. (9) "Retail marijuana products" means concentrated retail marijuana products and retail marijuana products that are comprised of retail marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures. (10) "Retail marijuana product manufacturing facility" means an entity licensed to purchase retail marijuana; manufacture, prepare, and package retail marijuana products; and sell retail marijuana and retail marijuana products to other retail marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers. (11) "Retail marijuana sales tax" means the sales tax imposed on retail marijuana and retail marijuana products pursuant to part 2 of this article. (12) "Retail marijuana store" means an entity licensed by the department to purchase retail marijuana from retail marijuana cultivation facilities and retail marijuana and retail marijuana products from retail marijuana product manufacturing facilities and to sell retail marijuana and retail marijuana products to consumers. (12.5) "Retail marijuana taxes" means the retail marijuana excise tax imposed under section 39-28.8-302 and the retail marijuana sales tax imposed under section 39-28.8-202. (13) "Sale" means any exchange or barter, in any manner or by any means whatsoever, for consideration. (14) "Transfer" means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration. (15) "Unprocessed retail marijuana" means marijuana at the time of the first transfer or sale from a retail marijuana cultivation facility to a retail marijuana product manufacturing facility or a retail marijuana store.

C.R.S. § 39-28.8-201 Retail marijuana sales tax - administration - enforcement

39-28.8-201. Retail marijuana sales tax - administration - enforcement. The tax imposed pursuant to this part 2 shall be administered and enforced in accordance with the provisions of article 21 of this title and part 1 of article 26 of this title, including, without limitation, any penalties for failure to make any return or to collect or pay any tax; except that, in the event of a conflict between the provisions of this part 2 and the provisions of article 21 of this title or part 1 of article 26 of this title, the provisions of this part 2 shall control.

C.R.S. § 39-28.8-202 Retail marijuana sales tax

39-28.8-202. Retail marijuana sales tax. (1) (a) (I) In addition to the tax imposed pursuant to part 1 of article 26 of this title 39 and the sales tax imposed by a local government pursuant to title 29, 30, 31, or 32, but except as otherwise set forth in subsections (1)(a)(II) and (1)(a)(III) of this section, beginning January 1, 2014, and through June 30, 2017, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of ten percent of the amount of the sale. Beginning July 1, 2017, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of fifteen percent of the amount of the sale. The tax imposed by this section is computed in accordance with schedules or forms prescribed by the executive director of the department; except that a retail marijuana store is not allowed to retain any portion of the retail marijuana sales tax collected pursuant to this part 2 to cover the expenses of collecting and remitting the tax. The executive director may promulgate rules to implement this section. (II) If, for the fiscal year 2014-15, fiscal year spending is greater than twelve billion eighty million dollars or if the revenue from retail marijuana taxes is greater than sixty-seven million dollars, then on September 16, 2015, the rate of the tax imposed under subparagraph (I) of this paragraph (a) is reduced as specified in section 20 (3)(c) of article X of the state constitution. On September 17, 2015, in accordance with paragraph (b) of this subsection (1) and the authority that the voters conferred through their approval of proposition AA at the November 2013 election, the rate is increased back to ten percent. (III) (A) If the ballot issue referred to the voters in accordance with section 39-28.8-603 (1) is placed on the November 3, 2015, ballot and a majority of the electors voting thereon vote "No/Against", then on January 1, 2016, the rate of the tax imposed under subparagraph (I) of this paragraph (a) is reduced to one-tenth of one percent as a method to refund revenues that exceed an estimate included in the ballot information booklet for proposition AA. (B) If the retail marijuana sales tax rate is reduced in accordance with sub-subparagraph (A) of this subparagraph (III), then on March 3, 2016, and on the third business day of the next three months thereafter, if necessary, the executive director of the department shall determine whether the amount refunded to that date through the rate reduction is greater than or equal to the required retail marijuana sales tax refund. If so, then the rate reduction expires on the fifth day after the determination. If, as of June 3, 2016, the amount refunded through the rate reduction is still less than the required retail marijuana sales tax refund, then the rate reduction expires on June 30, 2016. The executive director shall estimate the amount of the refund for the time included in a determination for which the actual revenue is unknown. (C) On the day after the temporary retail marijuana rate reduction expires in accordance with sub-subparagraph (B) of this subparagraph (III), the retail marijuana tax rate is increased back to ten percent. (D) As used in this subparagraph (III), "required retail marijuana sales tax refund" means an amount equal to the total proposition AA blue book refund amount calculated under section 39-28.8-602 (1) minus the sum of the amounts refunded through section 39-28.8-605 (3) and (4). ce with sub-subparagraph (B) of this subparagraph (III), the retail marijuana tax rate is increased back to ten percent. (D) As used in this subparagraph (III), "required retail marijuana sales tax refund" means an amount equal to the total proposition AA blue book refund amount calculated under section 39-28.8-602 (1) minus the sum of the amounts refunded through section 39-28.8-605 (3) and (4). (b) The maximum tax rate that may be imposed pursuant to this section is fifteen percent. At any time on or after January 1, 2014, the general assembly may, by a bill enacted by the general assembly and that becomes law: (I) Establish a tax rate to be imposed pursuant to this subsection (1) that is lower than fifteen percent of the sale of retail marijuana or retail marijuana products; or (II) After establishing a tax rate that is lower than fifteen percent pursuant to subparagraph (I) of this paragraph (b), increase the tax rate to be imposed pursuant to this subsection (1); except that, in no event shall the general assembly increase the tax rate above fifteen percent of the sale of retail marijuana or retail marijuana products. Notwithstanding any other provision of law, an increase in the tax rate pursuant to this subparagraph (II) shall not require voter approval subsequent to the voter approval required pursuant to part 4 of this article. (2) Nothing in this section shall be construed to impose a tax on the sale of marijuana or marijuana products to any person by a medical marijuana center. (3) Repealed.

C.R.S. § 39-28.8-203 Disposition of collections - definitions

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 paragraphs (a) and (f) of section 2 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: (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, an amount equal to ten 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. (I.5) Repealed. (II) The department of revenue shall certify to the state treasurer, at least annually, the percentage for apportionment to each local government, and the percentage for apportionment so certified shall be applied by said department in all distributions to local governments until changed by certification to the state treasurer. (III) Distribution to each local government pursuant to this paragraph (a) shall be made monthly, no later than the fifteenth day of the second successive month after the month for which retail marijuana sales tax collections are made. (IV) Each local government, upon request and during established business hours, shall be entitled to verify with the executive director of the department or the executive director's designee the proceeds to which the local government is entitled pursuant to the provisions of this paragraph (a). (V) Moneys apportioned pursuant to this paragraph (a) shall be included for informational purposes in the general appropriation bill or in supplemental appropriation bills for the purpose of complying with the limitation on state fiscal year spending imposed by section 20 of article X of the state constitution and section 24-77-103, C.R.S. (VI) [Editor's note: This version of subsection (1)(a)(VI) is effective until July 1, 2025.] Nothing in this paragraph (a) shall be construed to prevent a local government from imposing, levying, and collecting any fee or any tax upon the sale of retail marijuana or retail marijuana products or upon the occupation or privilege of selling retail marijuana products, nor shall the provisions of this paragraph (a) be interpreted to affect any existing authority of a local government to impose a tax on retail marijuana or retail marijuana products to be used for local and municipal purposes; however, any local tax imposed at other than the local jurisdiction's general sales tax rate shall not be collected, administered, and enforced by the department of revenue pursuant to section 29-2-106, C.R.S., but shall instead be collected, administered, and enforced by the local government itself. tax on retail marijuana or retail marijuana products to be used for local and municipal purposes; however, any local tax imposed at other than the local jurisdiction's general sales tax rate shall not be collected, administered, and enforced by the department of revenue pursuant to section 29-2-106, C.R.S., but shall instead be collected, administered, and enforced by the local government itself. (VI) [Editor's note: This version of subsection (1)(a)(VI) is effective July 1, 2025.] Nothing in this subsection (1)(a) prevents a local government from imposing, levying, and collecting any fee or any tax upon the sale of retail marijuana or retail marijuana products or upon the occupation or privilege of selling retail marijuana products, nor shall the provisions of this subsection (1)(a) be interpreted to affect any existing authority of a local government to impose a tax on retail marijuana or retail marijuana products to be used for local and municipal purposes; however, any local tax imposed at other than the local jurisdiction's general sales tax rate shall not be collected, administered, and enforced by the department of revenue pursuant to part 2 of article 2 of title 29, but shall instead be collected, administered, and enforced by the local government itself. (b) (I) Until July 1, 2017, the state treasurer shall transfer from the general fund to the marijuana tax cash fund an amount equal to eighty-five percent of the gross retail marijuana sales tax revenue collected by the department. (I.3) On and after July 1, 2017, but before July 1, 2018, of the ninety percent of the gross retail marijuana sales tax revenue in the general fund remaining after the allocation to local governments required by subsection (1)(a)(I) of this section is made, the state treasurer shall retain twenty-eight and fifteen one-hundredths percent less thirty million dollars in the general fund for use for any lawful purpose and shall transfer from the general fund: (A) Seventy-one and eighty-five one-hundredths percent to the marijuana tax cash fund; and (B) Thirty million dollars to the state public school fund created in section 22-54-114 (1) for use as specified in section 22-54-139 (2). (I.5) On and after July 1, 2018, of the ninety percent of the gross retail marijuana sales tax revenue in the general fund remaining after the allocation to local governments required by subsection (1)(a)(I) of this section is made, the state treasurer shall retain fifteen and fifty-six one-hundredths percent in the general fund for use for any lawful purpose and shall transfer from the general fund: (A) Seventy-one and eighty-five one-hundredths percent to the marijuana tax cash fund; and (B) Twelve and fifty-nine 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). (II) Repealed. (III) The general assembly shall make appropriations from the marijuana tax cash fund for the expenses of the administration of this section. (2) Repealed. (3) As used in this section: (a) "Ballot issue" means the ballot issue referred to the voters in accordance with section 39-28.8-603 (1). (b) "Marijuana tax cash fund" is the cash fund created in section 39-28.8-501 (1).

C.R.S. § 39-28.8-204 Revenue and spending limitations

39-28.8-204. Revenue and spending limitations. Notwithstanding any limitations on revenue, spending, or appropriations contained in section 20 of article X of the state constitution or any other provision of law, any revenues generated by the retail marijuana sales tax imposed pursuant to this part 2 as approved by the voters at the statewide election in November 2013, may be collected and spent as voter-approved revenue changes and shall not require voter approval subsequent to the voter approval required pursuant to part 4 of this article.

C.R.S. § 39-28.8-205 Rules

39-28.8-205. Rules. The department shall promulgate rules for the implementation of this part 2 in accordance with the "State Administrative Procedure Act", article 4 of title 24, C.R.S.

C.R.S. § 39-28.8-301 Retail marijuana excise tax - administration - enforcement

39-28.8-301. Retail marijuana excise tax - administration - enforcement. The tax imposed pursuant to this part 3 shall be administered and enforced in accordance with the provisions of article 21 of this title and part 1 of article 26 of this title, including, without limitation, any penalties for failure to make any return or to collect or pay any tax; except that, in the event of a conflict between the provisions of this part 3 and the provisions of article 21 of this title or part 1 of article 26 of this title, the provisions of this part 3 shall control.

C.R.S. § 39-28.8-302 Retail marijuana - excise tax levied at first transfer from retail marijuana cultivation facility - tax rate

39-28.8-302. Retail marijuana - excise tax levied at first transfer from retail marijuana cultivation facility - tax rate. (1) (a) (I) Except as otherwise provided in subsection (1)(b) or (1)(c) of this section, there is levied and shall be collected, in addition to the sales tax imposed pursuant to part 1 of article 26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility, at a rate of fifteen percent of the average market rate of the unprocessed retail marijuana if the transaction is between affiliated retail marijuana business licensees. Except as otherwise provided in subsection (1)(b) or (1)(c) of this section, there is levied and shall be collected, in addition to the sales tax imposed pursuant to part 1 of article 26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility, at a rate of fifteen percent of the contract price for unprocessed retail marijuana if the transaction is between unaffiliated retail marijuana business licensees. Retail marijuana excise tax shall also be calculated as fifteen percent of the contract price when the first transfer of retail marijuana that has been harvested for sale at a retail marijuana store or extraction by a retail marijuana product manufacturing facility is between unaffiliated retail marijuana cultivation facilities. The tax shall be imposed at the time when the retail marijuana cultivation facility first sells or transfers unprocessed retail marijuana from the retail marijuana cultivation facility to a retail marijuana product manufacturing facility or a retail marijuana store. (II) If, for the fiscal year 2014-15, fiscal year spending is greater than twelve billion eighty million dollars or if the revenue from retail marijuana taxes is greater than sixty-seven million dollars, then on September 16, 2015, the rate of the tax imposed under subparagraph (I) of this paragraph (a) is reduced as specified in section 20 (3)(c) of article X of the state constitution. On September 17, 2015, in accordance with paragraph (b) of this subsection (1) and the authority that the voters conferred through their approval of proposition AA at the November 2013 election, the rate is increased back to fifteen percent. (b) The fifteen percent tax rate specified in paragraph (a) of this subsection (1) is the maximum tax rate that may be imposed pursuant to this section. At any time on or after January 1, 2014, the general assembly may, by a bill enacted by the general assembly and that becomes law: (I) Establish a tax rate to be imposed pursuant to this subsection (1) that is lower than fifteen percent of the average market rate of unprocessed retail marijuana at the time that it is sold or transferred; or (II) After establishing a tax rate that is lower than fifteen percent pursuant to subparagraph (I) of this paragraph (b), increase the tax rate to be imposed pursuant to this subsection (1); except that, in no event shall the general assembly increase the tax rate above fifteen percent of the average market rate of unprocessed retail marijuana at the time that it is sold or transferred. Notwithstanding any other provision of law, an increase in the tax rate pursuant to this subparagraph (II) shall not require voter approval subsequent to the voter approval required pursuant to part 4 of this article. (c) The transfer of unprocessed retail marijuana exclusively for microbial control is deemed to not be the first transfer of unprocessed retail marijuana for the purposes of this section. (2) (a) Except as provided in subsection (2)(b) of this section, the tax imposed pursuant to subsection (1) of this section shall not be levied on the sale or transfer of unprocessed marijuana by a marijuana cultivation facility to a medical marijuana center. exclusively for microbial control is deemed to not be the first transfer of unprocessed retail marijuana for the purposes of this section. (2) (a) Except as provided in subsection (2)(b) of this section, the tax imposed pursuant to subsection (1) of this section shall not be levied on the sale or transfer of unprocessed marijuana by a marijuana cultivation facility to a medical marijuana center. (b) A transfer and change of designation of retail marijuana to medical marijuana pursuant to sections 44-10-502 (9) and 44-10-602 (13) or retail marijuana that has been extracted and is in a concentrated form to medical marijuana that has been extracted and is in a concentrated form pursuant to sections 44-10-503 (12) and 44-10- 603 (15) is not a transaction that creates a right to a refund of a retail marijuana excise tax imposed or paid prior to that transfer and change of designation. (3) The department of revenue shall provide local governments with information regarding the tax collected pursuant to this section under a confidential shared-use agreement.

C.R.S. § 39-28.8-303 Books and records to be preserved

39-28.8-303. Books and records to be preserved. (1) Every retail marijuana cultivation facility shall keep at each licensed place of business complete and accurate electronic records for that place of business, including itemized invoices of all retail marijuana grown, held, shipped, or otherwise transported or sold to retail marijuana product manufacturing facilities, retail marijuana stores, or other retail marijuana cultivation facilities in this state. (2) The records required by subsection (1) of this section shall include the names and addresses of retail marijuana product manufacturing facilities, retail marijuana stores, or other retail marijuana cultivation facilities to which unprocessed retail marijuana is sold or transferred, the inventory of all unprocessed retail marijuana on hand, and other pertinent papers and documents relating to the sale or transfer of unprocessed retail marijuana. (3) A retail marijuana cultivation facility shall keep itemized invoices of all unprocessed marijuana transferred to retail marijuana stores owned or controlled by the owners of the retail marijuana cultivation facility. (4) Every retail marijuana store shall keep at its place of business complete and accurate records to show that all retail marijuana received by the retail marijuana store was purchased from a retail marijuana cultivation facility. The retail marijuana store shall provide a copy of such records to the department if so requested. The department may establish the acceptable form of such records.

C.R.S. § 39-28.8-304 Returns and remittance of tax - civil penalty

39-28.8-304. Returns and remittance of tax - civil penalty. (1) Every retail marijuana cultivation facility shall file a return with the department each month. The return, which shall be upon forms prescribed and furnished by the department, shall contain, among other things, the total amount of unprocessed retail marijuana sold or transferred during the preceding month and the tax due thereon. (2) Every retail marijuana cultivation facility shall file a return with the department by the twentieth day of the month following the month reported and with the report shall remit the amount of tax due. (3) and (4) Repealed.

C.R.S. § 39-28.8-305 Distribution of tax collected

39-28.8-305. Distribution of tax collected. (1) All money received and collected in payment of the tax imposed by this part 3 shall be transmitted to the state treasurer, who shall distribute the money as follows: (a) (I) (Deleted by amendment, L. 2019.) (II) Repealed. (III) For the state fiscal year commencing July 1, 2019, and for each state fiscal year thereafter except for the state fiscal year commencing July 1, 2020, all of the money received and collected annually shall be transferred to the public school capital construction assistance fund created by article 43.7 of title 22 or to any successor fund dedicated to a similar purpose. (IV) For the state fiscal year commencing July 1, 2020, the lesser of the first forty million dollars received and collected or all of the money received and collected shall be transferred to the public school capital construction assistance fund created by article 43.7 of title 22 or to any successor fund dedicated to a similar purpose and the remainder of the money received and collected shall be transferred to the state public school fund created in section 22-54-114 (1). (b) Repealed.

C.R.S. § 39-28.8-306 Prohibited acts - penalties

39-28.8-306. Prohibited acts - penalties. It is unlawful for any retail marijuana cultivation facility to sell or transfer retail marijuana without a license as required by law, or to willfully make any false or fraudulent return or false statement on any return, or to willfully evade the payment of the tax, or any part thereof, as imposed by this part 3. Any retail marijuana cultivation facility or agent thereof who willfully violates any provision of this part 3 shall be punished as provided by section 39-21-118.

C.R.S. § 39-28.8-307 Revenue and spending limitations

39-28.8-307. Revenue and spending limitations. Notwithstanding any limitations on revenue, spending, or appropriations contained in section 20 of article X of the state constitution or any other provision of law, any revenues generated by the retail marijuana excise tax imposed pursuant to this part 3 as approved by the voters at the statewide election in November 2013 may be collected and spent as voter-approved revenue changes and shall not require voter approval subsequent to the voter approval required pursuant to part 4 of this article.

C.R.S. § 39-28.8-308 Rules

39-28.8-308. Rules. The department shall promulgate rules for the implementation of this part 3 in accordance with the "State Administrative Procedure Act", article 4 of title 24, C.R.S.

C.R.S. § 39-28.8-401 Submission of ballot questions regarding imposition of retail marijuana sales and excise tax

39-28.8-401. Submission of ballot questions regarding imposition of retail marijuana sales and excise tax. (1) The secretary of state shall submit a ballot question to a vote of the registered electors of the state of Colorado at the statewide election to be held in November 2013, for their approval or rejection. For purposes of title 1, C.R.S., the ballot question is a proposition. Each elector voting at said November election shall cast a vote as provided by law either "Yes/For" or "No/Against" on the proposition: "Shall state taxes be increased by $70,000,000 annually in the first full fiscal year and by such amounts as are raised annually thereafter by imposing an excise tax of 15% when unprocessed retail marijuana is first sold or transferred by a retail marijuana cultivation facility with the first $40,000,000 of tax revenues being used for public school capital construction as required by the state constitution, and by imposing an additional sales tax of 10% on the sale of retail marijuana and retail marijuana products with the tax revenues being used to fund the enforcement of regulations on the retail marijuana industry and other costs related to the implementation of the use and regulation of retail marijuana as approved by the voters, with the rate of either or both taxes being allowed to be decreased or increased without further voter approval so long as the rate of either tax does not exceed 15%, and with the resulting tax revenue being allowed to be collected and spent notwithstanding any limitations provided by law?" (2) The votes cast for the adoption or rejection of the question submitted pursuant to subsection (1) of this section shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in congress.

C.R.S. § 39-28.8-501 Marijuana tax cash fund - creation - distribution - legislative declaration - repeal

39-28.8-501. Marijuana tax cash fund - creation - distribution - legislative declaration - repeal. (1) The marijuana tax cash fund, referred to in this part 5 as the "fund", is created in the state treasury. The fund consists of any applicable retail marijuana sales tax transferred pursuant to section 39-28.8-203 (1)(b) on or after July 1, 2014, and any revenues transferred to the fund from any sales tax imposed pursuant to section 39-26-106 on the retail sale of products under article 10 of title 44. (2) (a) (I) The general assembly may appropriate money in the fund to the department of revenue for the direct and indirect costs associated with implementing this article 28.8 and article 10 of title 44. (II) Repealed. (b) (I) The general assembly hereby finds and declares that the retail marijuana excise tax and sales tax created a new revenue stream for the state, and the basis of these taxes is the legalization of marijuana, which presents unique issues and challenges for the state and local governments. Thus, there is a need to use some of the sales tax revenue for marijuana-related purposes. But, as this is revenue from a tax, the general assembly may appropriate this money for any purpose. (II) The general assembly further declares that the new retail marijuana tax revenue presents an opportunity to invest in services, support, intervention, and treatment related to marijuana and other drugs. (III) Therefore, the purposes identified in this subsection (2) prioritize appropriations related to legalized marijuana, such as drug use prevention and treatment, protecting the state's youth, and ensuring the public peace, health, and safety. (IV) Subject to the limitation in subsection (5) of this section, the general assembly may annually appropriate any money in the fund for the following purposes: (A) To educate people about marijuana to prevent its illegal use or legal abuse; (B) To provide services for adolescents and school-aged children in school settings or through community-based organizations; (C) To treat and provide related services to people with any type of substance use or mental health disorder, including those with co-occurring disorders, or to evaluate the effectiveness and sufficiency of behavioral health services; (D) For jail-based and other behavioral health services for persons involved in or diverted from the criminal justice system; (E) For state regulatory enforcement, policy coordination, or litigation defense costs related to retail or medical marijuana; (F) For law enforcement and law enforcement training, including any expenses for the police officers standards and training board training or certification; (G) For the promotion of public health, including poison control, prescription drug take-back programs, the creation of a marijuana laboratory testing reference library, and other public health services related to controlled substances; (H) To study the use of marijuana and other drugs, their health effects, and other social impacts related to them; (I) To research, regulate, study, and test hemp or hemp seeds; (J) to (L) Repealed. (M) For the expenses of the department of education and the department of public health and environment in developing and maintaining the resource bank for educational materials on marijuana and providing technical assistance as required in section 22-2-127.7; (N) For housing, rental assistance, and supportive services, including reentry services, pursuant to section 24-32-721; (O) For the development of local dually identified crossover youth plans and services as described in section 19-2.5-302; (P) For comprehensive quality physical education instruction pursuant to article 99 of title 22; (Q) and (R) Repealed. (S) For the program to support entrepreneurs in the marijuana industry created in section 24-48.5-128 (3); reentry services, pursuant to section 24-32-721; (O) For the development of local dually identified crossover youth plans and services as described in section 19-2.5-302; (P) For comprehensive quality physical education instruction pursuant to article 99 of title 22; (Q) and (R) Repealed. (S) For the program to support entrepreneurs in the marijuana industry created in section 24-48.5-128 (3); (T) For expenses relating to the reduction of collateral consequences experienced by people previously sentenced for drug offenses; (U) For trial court programs administered by the judicial department. (c) Subject to the limitations in subsection (5) of this section and in addition to the purposes for which the general assembly may appropriate money in the fund specified in subsections (2)(a) and (2)(b) of this section, the general assembly may also direct the state treasurer to transfer money in the fund to the high-cost special education trust fund. (3) Any moneys in the fund not expended for the purposes specified in subsection (2) of this section may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of moneys in the fund shall be credited to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year remain in the fund and shall not be credited or transferred to the general fund or another fund. (4) Repealed. (4.5) (a) On July 1, 2019, the state treasurer shall transfer from the fund to the high-cost special education trust fund, created in section 22-20-114.7, the amount specified in section 22-20-114.7 (2)(b)(I). (b) This subsection (4.5) is repealed, effective July 1, 2027. (4.6) Repealed. (4.7) (a) On July 1, 2024, the state treasurer shall transfer one million dollars from the fund to the information technology capital account of the capital construction fund created in section 24-75-302 (3.7)(a). (b) This subsection (4.7) is repealed, effective July 1, 2025. (4.8) The state treasurer shall transfer from the fund to the public school capital construction assistance fund created in section 22-43.7-104: (a) Fifty million dollars on June 1, 2022; and (b) (Deleted by amendment, L. 2023.) (c) Twenty million dollars on June 1, 2026. (4.9) (a) On August 1, 2021, and on August 1 of each year thereafter, the state treasurer shall make the following transfers from the fund: (I) Thirteen thousand dollars to the restorative justice surcharge fund established in section 18-25-101; (II) Three hundred eleven thousand dollars to the crime victim compensation fund established in section 24-4.1-117, distributed in accordance with subsection (4.9)(b) of this section; and (III) Two hundred seventy-four thousand dollars to the victims and witnesses assistance and law enforcement fund established in section 24-4.2-103, distributed in accordance with subsection (4.9)(c) of this section. Three hundred eleven thousand dollars to the crime victim compensation fund established in section 24-4.1-117, distributed in accordance with subsection (4.9)(b) of this section; and (III) Two hundred seventy-four thousand dollars to the victims and witnesses assistance and law enforcement fund established in section 24-4.2-103, distributed in accordance with subsection (4.9)(c) of this section. (b) (I) The state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(II) of this section to the crime victim compensation fund in each judicial district in proportion to each district's percentage of total statewide surcharges collected pursuant to section 24-4.1-117 (2) for the three-year fiscal year period beginning July 1, 2016. The state court administrator shall not retain any money transferred pursuant to subsection (4.9)(a)(II) of this section for its administrative costs associated with making the distribution. (II) Notwithstanding subsection (4.9)(b)(I) of this section, on and after July 1, 2024, the state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(II) of this section: (A) To the eighteenth judicial district crime victim compensation fund in proportion to the total surcharges collected in Arapahoe county for the three-year fiscal year period beginning July 1, 2016; and (B) To the twenty-third judicial district crime victim compensation fund in proportion to the total surcharges collected in Douglas, Elbert, and Lincoln counties for the three-year fiscal year period beginning July 1, 2016. (c) (I) The state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(III) of this section to the victims and witnesses assistance and law enforcement fund in each judicial district in proportion to each district's percentage of total statewide surcharges collected pursuant to section 24-4.2-103 (1) for the three-year fiscal year period beginning July 1, 2016. The state court administrator shall not retain any money transferred pursuant to subsection (4.9)(a)(III) of this section for its administrative costs associated with making the distribution. (II) Notwithstanding subsection (4.9)(c)(I) of this section, on and after July 1, 2024, the state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(III) of this section: (A) To the eighteenth judicial district victims and witnesses assistance and law enforcement fund in proportion to the total surcharges collected in Arapahoe county for the three-year fiscal year period beginning July 1, 2016; and (B) To the twenty-third judicial district victims and witnesses assistance and law enforcement fund in proportion to the total surcharges collected in Douglas, Elbert, and Lincoln counties for the three-year fiscal year period beginning July 1, 2016. (5) (a) In order to create a reserve within the fund that is available for expenditures if actual revenue is less than anticipated revenue, the total amount that the general assembly appropriates from the fund for a state fiscal year shall not exceed the amount that, based on the most recent estimate available, would cause the portion of the money in the fund that is not appropriated for the state fiscal year to be less than fifteen percent of the total amount appropriated from the fund for the state fiscal year. anticipated revenue, the total amount that the general assembly appropriates from the fund for a state fiscal year shall not exceed the amount that, based on the most recent estimate available, would cause the portion of the money in the fund that is not appropriated for the state fiscal year to be less than fifteen percent of the total amount appropriated from the fund for the state fiscal year. (b) For purposes of calculating the reserve set forth in subsection (5)(a) of this section: (I) The most recent estimate available is as of the date of the introduction of the bill that appropriates money from the fund; and (II) Any portion of the fund that is designated to constitute part of the state emergency reserve for the state fiscal year is excluded from the reserve amount. (6) To increase transparency, the marijuana enforcement division in the department shall include a link on its website that describes the disposition of the retail marijuana excise tax revenue and how the revenue from the fund was appropriated for the fiscal year 2015-16 and each fiscal year thereafter. (7) to (9) Repealed.

C.R.S. § 39-28.8-502 Marijuana tax cash fund - budget requests

39-28.8-502. Marijuana tax cash fund - budget requests. (1) Beginning with the budget request required to be submitted to the joint budget committee by November 1, 2014, and for the budget request required to be submitted each November thereafter, the governor shall include the governor's requested expenditures of moneys in the fund and the purposes of such expenditures for the fiscal year following the fiscal year in which the moneys were received by the state. (2) Beginning with the budget request required to be submitted to the joint budget committee by November 1, 2014, and for each budget request required to be submitted each November thereafter, the executive director of the department of revenue shall include in its budget request for the direct and indirect costs associated with implementing this article 28.8 and article 10 of title 44 the amount that the department requests from the money in the marijuana cash fund created in section 44-10-801, and the amount that the department requests from the marijuana tax cash fund.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.docxFetched: 10/6/2026