HB 1077: Average Market Rate of Unprocessed Retail Marijuana - Colorado

Rerevised → Final Act · 6 edits · Jun 1, 2026

MODERATE

The bill was finalized to take effect on July 1, 2026, replacing the previous 'Rerevised' version with signatures from the Governor and legislative leaders. The core policy content remains focused on defining how Colorado calculates tax rates for unprocessed marijuana, specifically distinguishing between indoor and outdoor cultivation methods.

Scope change

The scope of the bill remains unchanged; it continues to apply to the taxation of unprocessed retail marijuana in Colorado.

TIMELINE

The effective date was confirmed as July 1, 2026, and the bill was formally approved by the Governor and legislative officers.

DEFINITION

Added specific definitions for 'Indoor Unprocessed Retail Marijuana' and 'Outdoor Unprocessed Retail Marijuana' to clarify how different cultivation environments are taxed.

Defined 'Natural Weather Conditions' to include ambient temperature, precipitation, and humidity.

Expanded the definition of outdoor marijuana to allow for specific exceptions, such as using artificial light for small mother plants or protecting crops from adverse weather via approved contingency plans.

REQUIREMENT

Required the Department of Revenue to publish a general description of the methodology and data sources used to calculate tax rates while protecting confidential business information.

Mandated that the department establish rules to set specific tax rates for fresh frozen indoor and outdoor unprocessed marijuana by July 1, 2027.

Revised → Rerevised · 4 edits · May 11, 2026

MODERATE

The bill was rerevised to add a new Senate sponsor and update the legislative history dates. Substantively, the definition of 'outdoor unprocessed retail marijuana' was expanded to include plants grown using artificial light for vegetative stages (under 24 inches) and mother plants, as well as plants protected from adverse weather by contingency plans. This change broadens the scope of what qualifies as 'outdoor' marijuana for tax purposes, potentially affecting which cultivation methods are taxed at the outdoor rate versus the indoor rate.

Scope change

The bill's scope was expanded to include specific cultivation methods previously excluded from the 'outdoor' definition, such as using artificial light for vegetative growth and protecting plants from weather events.

DEFINITION

Added new criteria to the definition of 'outdoor unprocessed retail marijuana' to include plants cultivated with artificial light for vegetative growth (under 24 inches) and mother plants.

Added criteria allowing plants to be considered 'outdoor' if they are protected from adverse weather events via a contingency plan approved by the state licensing authority.

Updated the cross-reference in the 'indoor' marijuana definition to point to the new subsection (6.7) instead of the old (6.5).

TECHNICAL

Added a new Senate sponsor (Gonzales J.) and updated the rerevision date to May 11, 2026.

Reengrossed → Revised · 4 edits · May 8, 2026

MODERATE

The bill was revised to include all amendments adopted on second reading in the second house, updating the effective date to May 8, 2026. Substantively, the definitions for marijuana cultivation were expanded to explicitly include 'fresh frozen' indoor and outdoor unprocessed marijuana. The bill also added a new definition for 'natural weather conditions' and modified the rules for outdoor cultivation to allow protection from adverse weather events via an approved contingency plan.

Scope change

The bill's scope was expanded to include fresh frozen marijuana in the rate-setting requirements and to clarify the definition of outdoor cultivation to include temporary protection from adverse weather.

DEFINITION

Added new definitions for 'fresh frozen indoor unprocessed retail marijuana' and 'fresh frozen outdoor unprocessed retail marijuana' to the statute.

Added a new definition for 'natural weather conditions' covering ambient temperature, precipitation, and humidity.

ELIGIBILITY

Modified the definition of outdoor unprocessed retail marijuana to allow cultivation protected from adverse weather events if approved by the state licensing authority.

TIMELINE

Updated the version header to reflect amendments adopted on second reading in the second house and set the effective date to May 8, 2026.

Engrossed → Reengrossed · 3 edits · Apr 30, 2026

MINOR

The bill title was updated from 'Engrossed' to 'Reengrossed' to reflect that it now includes all amendments adopted during the House of Introduction. Additionally, the bill summary was updated to clarify that it currently reflects the unamended version as of April 30, 2026, and will be revised later if the bill passes its third reading. No substantive policy changes, such as new requirements, funding, or eligibility criteria, were identified in this text.

TECHNICAL

Updated the bill status header from 'Engrossed' to 'Reengrossed' to accurately reflect the inclusion of all amendments.

Revised the bill summary note to specify the date (April 30, 2026) and reading status, clarifying that the current summary does not include future amendments.

Added new co-sponsors (Phillips, Ricks, Titone) to the House sponsorship list.

Introduced → Engrossed · 3 edits · Apr 29, 2026

MINOR

The bill was reengrossed to add a Senate Appropriations committee and expand the legislative title to include making an appropriation. The core policy changes involve reorganizing the tax rate definitions for indoor and outdoor unprocessed marijuana, specifically clarifying that initial extraction rates must be lower than direct sale rates. Additionally, the definition of 'outdoor' marijuana was updated to allow artificial light for maintaining low-height vegetative plants and mother plants.

Scope change

The bill's scope was expanded to include an appropriation for the new tax measures, and the applicability of tax rates was refined to distinguish between extraction and direct sale categories.

FISCAL

Added 'Appropriations' to the House Committees list and updated the bill title to explicitly state that it makes an appropriation.

DEFINITION

Reordered the statutory definitions to list indoor marijuana rates before outdoor rates and clarified the hierarchy between extraction and direct sale rates.

Modified the definition of 'outdoor unprocessed retail marijuana' to permit the use of artificial light for maintaining vegetative plants under 24 inches in height and mother plants.

Average Market Rate of Unprocessed Retail Marijuana

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